Saudi Arabia-based Islamic Development Bank (IDB) is set to launch a US$10 billion sukuk issuance programme on the Nasdaq Dubai exchange.

According to Reuters, it would be IDB’s third sukuk programme – it already issues Islamic bonds in London and Kuala Lumpur – and its first in a Middle Eastern country.

The launch date for the IDB’s programme is yet to be scheduled.

Reuters quoted IDB president Ahmad Mohamed Ali saying that, "As the IDB plans a significant expansion of its activities, Dubai’s world class exchange and regulatory architecture together with its commitment to providing Islamic finance solutions of the highest quality make it a natural home for our securities."

The IDB, which has already issued 15 sukuk in London since 2005, plans to expand its sukuk programme on the London Stock Exchange to US$10 billion this month from the current US$6.5 billion.

In addition, the IDB has a MYR1 billion (US$313 million) programme listed on Bursa Malaysia, which has raised a total of MYR700 million via three sukuk since 2008.