Ajman Bank continues on its path to transformation with responsible innovation, fiscal discipline and customer-centric initiatives. The bank’s CEO, Mustafa Al Khalfawi, shares his insights on its first sukuk issuance, another major milestone in its journey to growth.
Ajman Bank launched its debut $500 million five-year sukuk just a day after mandate announcement. What drove such swift execution, and how did you manage to navigate the volatile global backdrop?
The successful and swift execution of Ajman Bank’s debut $500 million five-year sukuk underscores the strength of our internal alignment, the quality of our investor engagement, and the disciplined planning behind our market entry. The transaction was launched shortly after mandate announcement, reflecting both our ability to respond decisively to favorable market windows and the confidence we placed in our credit fundamentals.
Despite a volatile global backdrop, we received clear and positive feedback during non-Deal Investor engagement, which allowed us to accelerate the execution timeline with precision. Our agility, combined with a deep understanding of market dynamics and investor sentiment, enabled us to navigate the environment effectively.
This issuance also reflects the continued progress of our transformation strategy, anchored in speed, service, and specialization; and our focus on building a more diversified, efficient funding structure in line with international best practices. It marks a significant step forward in Ajman Bank’s journey as we continue to expand our presence in the global Islamic capital markets.
Read: Ajman Bank launches debut sukuk with $2.7 billion demand from global investors
Despite recent market volatility, the sukuk attracted orders exceeding $2.7 billion. What do you think made investors confident in Ajman Bank’s credit story?
The overwhelming investor interest – more than five times oversubscribed – speaks about the credibility of Ajman Bank’s strategic vision, sound governance, and financial resilience. Investors recognized our consistent performance, strong capital base, growing profitability, including a 25 percent increase in net profit in Q1 2025, and continuation of improvement of our key financial metrics.
Our focused Islamic banking model, coupled with a disciplined transformation agenda and a high-quality asset portfolio, presented a compelling investment case. Additionally, our alignment with Ajman Vision 2030 and our role in supporting the UAE’s broader economic development further reinforced confidence in our long-term sustainability and strategic direction.
Is this sukuk the start of a broader debt capital markets program? Should we expect more issuances from Ajman Bank in the near future?
This inaugural sukuk represents a strategic milestone in Ajman Bank’s funding diversification strategy and positions us effectively in the international debt capital markets. While we remain well-capitalized with a strong liquidity profile, we view this issuance as the foundation for a scalable and sustainable capital markets program.
We have a $ 1.5 billion EMTN program approved by the AGM and there will be future issuance based on funding needs, market conditions, the business plan, growth strategy and our continued commitment to value creation for our stakeholders. Our approach will remain measured, aligned with our balance sheet growth, and consistent with the principles of Sharia and prudent financial management.
Ajman Bank posted a net profit of $36.6 million in Q1 2025, marking a 25 percent year-on-year increase. What were the key drivers behind this strong growth?
Our Q1 2025 performance reflects the successful execution of our transformation strategy. Key drivers included growth in operating income, effective cost discipline, enhanced asset quality and improved liquidity position. We also continued to see positive momentum across our core segments – particularly in wholesale, SME, and government banking – supported by increased digital engagement and customer acquisition.
Our capital position remains robust, and we have continued to invest in innovation, risk management, and people. This strong start to the year reinforces our ability to deliver sustainable profitability while staying focused on our long-term growth priorities.
How do you see the role of Islamic finance evolving in driving sustainable economic growth in the UAE and beyond? What distinguishes Ajman Bank’s approach to Islamic banking from its competitors?
Islamic finance has an increasingly vital role to play in advancing inclusive, ethical, and sustainable economic growth, particularly in markets like the UAE that are deeply rooted in both tradition and innovation. Its principles – centred around transparency, shared risk, and tangible asset backing – are naturally aligned with long-term sustainability goals.
What distinguishes Ajman Bank is our ability to deliver Sharia-compliant financial solutions while embracing digital transformation, customer centricity, and responsible innovation. We are not just focused on compliance – we are focused on impact.
Our partnerships, digital ecosystem, and strategic alignment with national objectives such as Ajman Vision 2030 and the UAE’s green agenda allow us to serve as a catalyst for economic empowerment and community development. Islamic banking, in our view, is not only a model of ethical finance but also a blueprint for future-ready financial services.
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