Sharjah Islamic Bank (SIB) has raised US$500 million through a five-year sukuk priced at a final yield of 5.85%, or 105 basis points over five-year US Treasuries. The deal, announced on 27 September 2026, drew a US$1.3 billion order book, 2.6 times the issue size, Khaleej Times reported.
The details
| Issuer | Sharjah Islamic Bank, UAE |
| Size | US$500 million |
| Tenor | Five years |
| Final yield | 5.85% |
| Spread | 105 basis points over five-year US Treasuries |
| Order book | US$1.3 billion (2.6 times covered) |
It is SIB’s 13th sukuk since it first tapped capital markets in 2006. Chief executive Mohamed Abdalla said the bank continues “to build on SIB’s presence in international capital markets.” Deputy CEO Ahmed Saad said the order book confirmed investors’ confidence in the bank. The arrangers and investor breakdown were not disclosed in the report.
How does this fit the wider market?
The deal came as Gulf issuers returned to the market after a disrupted first half. Khaleej Times cited Moody’s Ratings as expecting full-year 2026 sukuk issuance of around US$280 billion, in line with 2025, after first-half issuance of about US$130 billion. Fitch Ratings has been more cautious, expecting 2026 issuance to stay below 2025 levels, as covered in our summary of Fitch’s mid-year review. The two agencies use different market coverage, so their figures are not directly comparable.
With sovereign dollar supply from Saudi Arabia expected to be quiet in the second half, banks and corporates such as SIB have more room to attract investors. Fitch had described bank and corporate issuers as likely to be “opportunistic” in 2026, and this deal fits that pattern.
Why it matters
A strong order book for a mid-sized UAE Islamic bank suggests international investors still have appetite for Gulf bank sukuk despite regional tensions. For other Islamic banks planning dollar issues, the 105 basis point spread gives a useful pricing reference. For readers outside the Gulf, the deal is a reminder that Islamic banks raise much of their long-term funding through sukuk, which in turn supports their financing to customers.
This is market information, not investment advice.
FAQ
USD 500 million through a five-year sukuk.
A final yield of 5.85%, or 105 basis points over five-year US Treasuries.
This is its 13th since 2006.
Source: Khaleej Times, 27 September 2026.
