The issuance also represents the first Green Sukuk to be issued through a Qatar Financial Centre-based entity.
Al Rayan Bank’s Green Sukuk, a Shariah-compliant investment instrument that raises funds for environmentally friendly projects, was listed on the Qatar Stock Exchange (QSE) on Monday, marking a national first for the country’s capital markets.
The full issuance, valued at QAR 500 million, was listed through a direct listing. The sukuk carry a three-year term and offers investors an annual profit return of 4.25%.
It is the first time green sukuk have been listed on the QSE, expanding Qatar’s growing debt market and giving investors access to sustainable, Shariah (Islamic Law) compliant fixed-income products alongside the market’s traditionally equity-heavy offerings.
Faisal Abbas, Chief Commercial Officer at Qatar Stock Exchange, said the listing introduces greater diversification for investors.
“It also provides a diversified asset class for a market which is predominantly equity-based. When you provide fixed income instruments, it adds to the type of instruments that the investors can come into,” Abbas said.
He added that demand for ethical and ESG (Environmental, Social and Governance) aligned investments continues to grow, particularly among Shariah focused investors.
“There’s a number of Sharia investors who have interest in instruments that are income-generating as well as ESG-compliant,” he said.
Abbas noted that the structure is designed to attract both local and international markets, who are looking for such structures which are in addition to equity, giving them diversity into fixed income.
The issuance also represents the first Green Sukuk to be issued through a Qatar Financial Centre-based entity and listed and cleared locally, supporting the continued development of Qatar’s capital markets ecosystem.
Abdulla Mohammed Al Ansari, Chief Executive Officer of Qatar Stock Exchange, described the development as a milestone for the market.
“The listing of the first Green Sukuk in the history of Qatar Stock Exchange marks an important milestone in the continued development of Qatar’s capital market, as it reflects our commitment to expanding sustainable and Shariah-compliant financing instruments.”
He added that the achievement highlights coordination across national financial institutions, including Qatar Stock Exchange, Qatar Central Bank, the Qatar Financial Markets Authority, Qatar Central Securities Depository (Edaa), and other entities working together under the Third Financial Sector Strategy.
Fahad Bin Abdulla Al Khalifa, Group Chief Executive Officer of Al Rayan Bank, said the bank sees the move as part of its long-term vision for the sector.
“By delivering the first Green Sukuk to be listed and cleared in Qatar, we are not only reinforcing our role as a forward-looking institution, but also contributing to the evolution of the local capital markets infrastructure.”
The listing also reflects the accelerated development of QSE’s debt market, following earlier milestones including the country’s first corporate bond, Islamic sukuk and sustainable bond offerings, as Qatar continues to expand its range of Shariah-compliant and ESG-focused investment products.
