Ras Al Khaimah completes $1 billion sukuk issuance

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 $I billion senior unsecured sukuk at a profit rate of [5.0388] on 5th March 2025.

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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 28th February 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 3rd March 2025 and conducted virtual roadshows to meet multiple investors from across the globe, including Asia, the GCC, Europe and the UK.