The Sharjah Finance Department, SFD, recently established a framework worth AED4 billion to enhance liquidity for the banking system in the emirate. The move aims to provide additional financial assistance to all businesses impacted by the outbreak of COVID-19.
“Issued as 12-month dirham-denominated paper in several tranches, the Sharjah Liquidity Support Mechanism, SLSM, Sukuk represents the first rated short term local currency tradeable instrument in the UAE, which can be used for liquidity management by banks,” SDF said in a statement on Tuesday.
“This paper has a short term investment grade rating of A-2 by Standard & Poor’s rating agency,” it added.
Waleed Al Sayegh, Director-General of Sharjah Finance Department said, “The authorities in Sharjah and across the region are taking the required measures to provide maximum assistance to all businesses dealing with the impact of the outbreak. This service will allow banks to use the Sukuk as security to access liquidity facilities at the UAE Central Bank, by following the required guidelines.”
He further added that since the beginning of the crisis, the Sharjah Government has introduced several packages and services to support companies and individuals.
A first tranche of the SLSM was subscribed to in May by Bank of Sharjah with an AED 2 billion participation. Subsequent tranches with one or more other banks are expected to expand the SLSM to AED 4 billion, the statement added.
JIIC’s AED 200 million project
Jubail Island Investment Company, JIIC, has awarded continuing infrastructure works contract worth more than AED200 million for Jubail Island to Gulf Contractors Company, GCC. The works are part of the 18-month-long contract to complete the infrastructure required for the remaining residential villages within Phase 1 of the AED5 billion project – Nad Al Dhabi, Seef Al Jubail and Ain Al Maha.
An AED80 million contract for infrastructure works for the initial village and central loop road was previously awarded and announced in mid-December 2019. With overall infrastructure works on Jubail Island cumulatively amounting to approximately AED600 million, JIIC confirmed that works worth AED400 million are already underway.
The scope of the GCC contract comprises the construction of over 47.5 kilometres of internal roads in Nad Al Dhabi, Seef Al Jubail and Ain Al Maha villages. Infrastructure development, including electricity, water, sewage, irrigation, telecom and gas networks, as well as street lighting are within its ambit.
Speaking on the announcement, Mounir Haidar, Managing Director of JIIC, said, “Following the commencement of construction for the initial infrastructure works in early 2020, we are delighted to confirm the start of infrastructure works to complete the remaining Phase 1 village on Jubail Island, demonstrating our dedicated commitment to on-time delivery of plots as early as Q3 2021.”
Jubail Island is a designated freehold investment zone in Abu Dhabi that will comprise a mix of serviced plots, high-end and mid-range properties as well as a retail, office park and F&B outlets.
The development will also feature spacious and well-appointed outdoor areas, including parks, walking tracks, kayaking stations and cycling routes for nature lovers and water sports enthusiasts.
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