Estithmar Holding Group has successfully listed its debut corporate sukuk, valued at QAR 1 billion, on the London Stock Exchange. This milestone marks the first corporate sukuk denominated in Qatari Riyals to be listed on an international exchange. The issuance aims to diversify the group’s funding sources while bolstering investor confidence in Qatar’s corporate sector.
The sukuk, which is Sharia-compliant, represents an important step for Estithmar Holding, a prominent Qatari conglomerate known for its wide-ranging interests in construction, healthcare, hospitality, and investment sectors. The QAR 1 billion sukuk, which translates to approximately $274 million, is part of the company’s long-term strategy to support its growth and expansion efforts both domestically and internationally. The listing on the London Stock Exchange underscores Qatar’s growing influence in Islamic finance and highlights the global appeal of Qatari issuers in tapping into international capital markets.
Estithmar Holding’s sukuk has garnered significant attention from investors, especially those focused on Islamic finance. This issuance not only reinforces the group’s financial strength but also provides an attractive option for regional and global investors seeking exposure to a well-established Qatari entity. The demand for the sukuk was strong, reflecting confidence in Estithmar’s robust business model and its diversified portfolio. The company’s decision to list on the London Stock Exchange aligns with the broader trend of Qatari firms seeking to access a global investor base while adhering to Sharia-compliant financing models.
The structure of the sukuk adheres to Islamic financial principles, meaning that it avoids interest payments and instead generates returns through shared risk and reward mechanisms, typically involving tangible assets. For Estithmar, this structure was an attractive way to raise capital while maintaining compliance with Islamic law. Analysts have noted that sukuk offerings in Qatar have historically been dominated by sovereign and quasi-sovereign issuances, making Estithmar’s move as a private company a noteworthy development in the country’s financial landscape.
This listing is part of a broader trend of Qatari entities increasing their presence in international markets. In the past few years, Qatar has been actively promoting its financial sector as a hub for Islamic finance, with the government supporting efforts to enhance the regulatory framework and attract global investors. Estithmar’s sukuk is likely to pave the way for other Qatari corporations to explore similar avenues for raising funds. The fact that the sukuk is denominated in Qatari Riyals, rather than US dollars or other foreign currencies, is seen as a bold move that signals confidence in the country’s currency stability.
The London Stock Exchange, known for its deep liquidity and broad investor base, was a strategic choice for Estithmar Holding. By listing on one of the world’s most prominent exchanges, the company aims to attract international investors while reinforcing its reputation as a leading player in the Qatari market. The listing also highlights the growing appeal of London as a global center for Islamic finance, as the city continues to attract issuers from the Middle East looking to raise funds through sukuk and other Sharia-compliant financial instruments.
The success of Estithmar Holding’s sukuk could have wider implications for the region’s corporate sector. As more companies in Qatar and across the GCC consider tapping international capital markets, sukuk offerings are likely to become an increasingly popular financing tool. Islamic finance experts believe that the listing of Qatari Riyal-denominated sukuk on a major global exchange will encourage other corporations to follow suit, further integrating the Gulf region’s financial markets with global capital flows.
Qatar’s banking sector has played a supportive role in facilitating this issuance, with several local financial institutions involved in structuring and distributing the sukuk. These institutions have been instrumental in promoting Islamic finance products and ensuring that they are accessible to a broad range of investors, both domestically and abroad. The listing on the London Stock Exchange provides a new level of visibility and prestige to the Qatari sukuk market, which has seen steady growth over the past decade.
Qatar’s financial regulators have also been encouraging the development of the sukuk market as part of the country’s broader efforts to diversify its economy and reduce reliance on hydrocarbons. The Estithmar sukuk is seen as an important milestone in this strategy, with analysts expecting more corporate issuances to follow in the coming years. By expanding the range of available financing options, Qatari corporations can better manage their capital needs and pursue growth opportunities in key sectors such as infrastructure, real estate, and healthcare.
Market observers have pointed out that Estithmar Holding’s sukuk benefits from a favorable macroeconomic environment in Qatar, with strong GDP growth, low inflation, and a stable currency. These factors have contributed to a positive outlook for the company and its ability to service the sukuk over its term. Furthermore, the backing of high-quality assets and the group’s strong track record in the Qatari market have made the sukuk an attractive proposition for both regional and international investors.
