• The sukuk issuance is met with strong investor demand globally

Ras Al Khaimah, United Arab Emirates: The Government of Ras Al Khaimah, acting through the Investment and Development Office of Ras Al Khaimah, successfully closed its offering of a 10-year US$1 billion senior unsecured sukuk at a profit rate of [5.038%] on 5th March 2025.

The Government of Ras Al Khaimah tapped the international debt capital market after 10 years and the issuance of the sukuk was completed on 5th March 2025 under the Government of Ras Al Khaimah’s US$2 billion Trust Certificate Issuance Programme which was signed on February 28, 2025 (the Programme).

The sukuk was issued under the Programme by RAK Capital, a special purpose vehicle affiliated with the Government of Ras Al Khaimah.

The issuance follows S&P Global Ratings’ affirmation of its ‘A’ rating and Fitch’s affirmation of its ‘A+’ rating on RAK Capital’s sukuk programme, which is in line with the credit agencies’ ratings for the Government of Ras Al Khaimah.

The sukuk is consistent with the most recent Shari’a developments, as promulgated by the UAE Central Bank Higher Shari’a Authority, with the sale of the ijara assets being an enforceable sale with a specific exemption by decree for registration of the real estate ijara assets.  In this manner, the Government of Ras Al Khaimah has adhered to the most Shari’a-compliant structure.

The Government of Ras Al Khaimah announced the issuance on March 3, 2025 and conducted virtual roadshows to meet multiple investors from across the globe, including Asia, the GCC, Europe and the UK. Following the successful roadshow, RAK Capital priced the transaction on March 5, 2025 while listing the sukuk on the Nasdaq Dubai.

The transaction was launched at an Initial Pricing Guidance of 10-year US Treasury plus 120 bps. Strong investor demand and an orderbook of over 4.4 USD billion enabled the Government of Ras Al Khaimah to compress the final pricing by 40 bps to 10-year US Treasury plus 80 bps. The issuance was subscribed by global investors including 57.8% from MENA, 35% from the UK/continental Europe and 7.2% from Asia/Others.

Citi and Emirates NBD Capital acted as Structuring Advisors, while Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, First Abu Dhabi Bank, RAKBANK and Standard Chartered Bank acted as Joint Global Coordinators.

An official spokesperson for the Government of Ras Al Khaimah said: “The Government of Ras Al Khaimah is delighted with the overwhelming response that we have received from investors globally. The strong investor demand demonstrates confidence in Ras Al Khaimah’s creditworthiness, fiscal management and economic fundamentals, which is exemplified by the high oversubscription level of 4.4 times for the issuance. The New Issue Concession priced into the deal was -10 bps, which is a clear recognition of Ras Al Khaimah’s strong credit position and a stamp of approval from the international investor community for the Emirate’s remarkable growth and success story.”

About the Investment and Development Office

The Investment and Development Office (IDO) is the investment arm of the Government of Ras Al Khaimah. It was established by Emiri Decree in 2004 and is a pillar of the Emirate’s development and prosperity. IDO’s mandate is to generate superior and reliable financial returns and to drive sustainable economic growth and diversification for the Emirate and its people, for generations to come. IDO’s portfolio spans a wide range of sectors, with both listed and non-listed investments.  

About Ras Al Khaimah

Ras Al Khaimah (RAK) is the northernmost of the seven Emirates that make up the United Arab Emirates. It is known for its diverse landscape, from 79.4 kilometers of coastline, to deserts and imposing mountains, as well as its rich history, dating back 7,000 years. It has many archaeological sites, four of which have been shortlisted on UNESCO’s tentative list of World Heritage Sites. The Emirate’s Jebel Jais, which is the highest mountain in the UAE, boasts attractions including Jebel Jais Flight, the world’s longest zip line at almost 3km, and 1484 by Puro, the UAE’s highest restaurant. Ras Al Khaimah is centrally located at the modern crossroads between Europe, Asia and Africa, with one third of the world’s population within four hours’ flying time, making it an ideal location for businesses to expand into the UAE, the Middle East and Africa region and beyond. The Emirate boasts one of the most diverse economies in the region, with no single sector accounting for more than 30% of the Emirate’s GDP – a critical advantage that enhances Ras Al Khaimah’s economic flexibility and strength. Ras Al Khaimah has been rated in the ‘A’ range by Fitch and Standard & Poor’s international ratings agencies for 15 years. Ras Al Khaimah is a multicultural society, with a population of 0.4 million people. The Emirate is known for its tranquil, coastal environment, attainable beachfront living and high quality of life. With year-round sunshine, straightforward business set-up and a competitive and affordable cost of living, Ras Al Khaimah is the informed choice for business, lifestyle and exploration.