Abu Dhabi Islamic Bank (ADIB) has issued an AED 400 million Sukuk to Mohebi Logistics for the construction and development of the company’s new warehouse and logistics centre in Dubai South.
This issuance is structured under Sharia principles and is the first Sukuk transaction connected to Dubai South. ADIB has acted as sole book runner for the Sukuk issue.
The deal is a landmark transaction for Mohebi as it represents their debut financing in the capital markets and is the first Sukuk issue based on an Istisna/Ijara structure. CEO Mohammed Mohebi commented: “This will prove instrumental in helping us more than double our existing storage and logistics capabilities.”
CEO Tirad Al Mahmoud added that ADIB is looking to support growth initiatives: “We’re keen to partner with organizations such as Mohebi Logistics to support their growth initiatives as they play a leading role in the retail distribution business. We’re confident that the Dubai South free zone will strengthen Dubai’s position as a premier global trade and logistics hub.”
UAE links with China growing
China is the UAE’s second largest trading partner and serves as the gateway to about 60% of China’s merchandise exported to regional markets, says Sultan Bin Saeed Al Mansoori, UAE Minister of Economy.
To a great extent, the country’s robust logistics industry is due to the UAE’s strong ties with China. It’s home to nearly 300,000 Chinese citizens for living and working purposes, along with more than 4,000 companies, 249 trading agencies and 5451 registered Chinese brands.
Last April the UAE joined the China-led US$50 billion Asian Infrastructure Investment Bank (AIIB) as a founding member. The goal is to focus on development projects with important socio-economic benefits.