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 $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 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.
Following the successful roadshow, RAK Capital priced the transaction on 5th March 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 US$4.4 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.”
RAKTDA, Trip.com Group bolster alliance: Ras Al Khaimah Tourism Development Authority (RAKTDA) and Trip.com Group have signed a Memorandum of Understanding (MoU) at ITB Berlin 2025 to launch a range of new initiatives designed to boost Ras Al Khaimah’s appeal as a must-visit destination for Chinese travellers. The signing of the MoU builds on a period of significant momentum for Ras Al Khaimah in China.
The agreement, signed by Amanda Wang, Vice President of Trip.com Group, and Iyad Rasbey, Vice President of Destination Tourism Development at RAKTDA, builds on the success of an existing partnership and sets the stage for the launch of transformative initiatives that will enhance Ras Al Khaimah’s visibility, appeal and accessibility in China, one of the world’s fastest-growing outbound travel markets.
Harnessing Trip.com Group’s advanced digital ecosystem, data intelligence and consumer reach, the partnership will drive strategic marketing initiatives that engage Chinese travellers at every stage of their journey – from inspiration and planning to booking and on-the-ground experiences.
Through immersive storytelling, targeted promotions, and exclusive travel offerings, Ras Al Khaimah will be positioned as the go-to destination for Chinese visitors seeking an authentic Arabian escape. Combining breathtaking natural landscapes, rich cultural heritage, and world-class hospitality, the Nature Emirate offers a one-of-a-kind blend of adventure, relaxation, and history, providing a compelling alternative to traditional Middle Eastern destinations.
Since the partnership’s launch in June 2024, Trip.com Group has generated more than 17.5-million-page impressions for Ras Al Khaimah. The collaboration has been particularly impactful for Ras Al Khaimah’s hospitality sector, with hotel bookings increasing by 22% in the second half of 2024, driven by targeted promotions and destination marketing campaigns.
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