Dubai Islamic Bank Helps Pakistan Get $1 Billion in Islamic Financing
Dubai Islamic Bank (DIB) has arranged a $1 billion loan for the Government of Pakistan. The financing is for five years and follows Islamic banking rules. It was supported by many Islamic financial institutions, according to a statement on Tuesday.
About the Loan
Part of the loan is backed by a guarantee from the Asian Development Bank (ADB). This is the first time ADB has provided such a guarantee for Pakistan.
DIB was the main coordinator for this Islamic loan. DIB and Standard Chartered were the lead arrangers. Other banks involved include Abu Dhabi Islamic Bank, Ajman Bank, Sharjah Islamic Bank, and HBL.
Most of the loan (89%) follows Shariah (Islamic law) rules. The deal helps Pakistan grow its Islamic finance sector and shows there is strong demand for such financing.
This also marks Pakistan’s return to raising money from Middle Eastern markets after two years. It gives Pakistan affordable and ethical funding. It also helps financial partners support development in growing markets and promote Islamic finance.
Previous Sukuk Deals
DIB has done many similar deals before. In March 2024, it raised $1 billion through a “sustainable sukuk” (an Islamic bond). It offered a 5.24% yearly profit and was very popular with investors, who ordered 2.5 times more than available.
This sukuk was listed on Euronext Dublin and NASDAQ Dubai.
Earlier, in February 2023, DIB raised another $1 billion from a similar bond, offering 4.8% yearly returns. In November 2022, DIB raised $750 million from its first sustainable sukuk.
In 2021, DIB sold $1 billion in sukuk after receiving $2.8 billion in orders. That same year, it also raised $500 million with record-low rates for the region.
Published: 9th July 2025
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