The Islamic Development Bank is considering the creation of an Islamic bond issuance programme in Dubai. This would be a tremedous boost to the plans of the emirate to become the global hub for Islamic business enterprise.

This sukuk from the Jeddah, Saudi Arabia bank would be the third of its kind. The triple A rated IDB is an international institution with 56 member countries whose goal is to promote economic development in Muslim countries and other communities, This would be the first sukuk programme done by the IDB in the Middle East.

Discussions for the programme are still at its early stages. The bank though had seen the ever increasng demand for its sukuk and it is now also planning to expand its London-listed programme to be worth USD10 billion from the current USD6.5 billion.

According Islamic Development Bank Treasury Department Director Hasan Demirhan, "The size has not yet been estimated and it may take time." He was referring to the possible volume of the Dubai sukuk programme.

He added, "The format would be similar to the existing MTN (Medium Term Note) format subject to the prevailing regulatory requirements."