AlHuda CIBE Served as Shariah Advisor for Multicurrency Sukuk Issuance
Landmark CRDB–Albarakah Sukuk strengthens Tanzania’s Islamic finance landscape with asset-backed, Shariah-compliant investment opportunities.
(September 18 2025 (Dubai – UAE)): AlHuda Centre of Islamic Banking and Economics (CIBE) served as a Shariah Advisor for the successful issuance of the CRDB–Albarakah Multicurrency Sukuk, structured on the basis of Ijarah. This landmark issuance, approved by Capital Markets and Security Authority (CMSA) and Dar Es Salaam Stock Exchange (DSE) for respective listing, marks a significant milestone in the development of Islamic capital markets in East Africa.
The CRDB–Albarakah Sukuk was launched with a multicurrency structure, offering subscription options in Tanzanian Shillings (TZS) and US Dollars (USD). With a tenor of 5 years and a return of up to 12% per annum (TZS) and 6% per annum (USD), paid quarterly. The Sukuk provides an attractive Shariah-compliant investment opportunity for both local and international investors. The minimum subscription amount was set at TZS 500,000 and USD 1000, making it accessible to a wide range of investors.
As a Shariah-compliant financial instrument, the Sukuk is backed by tangible leased assets under the Ijarah structure, ensuring that all returns are derived from asset-based transactions rather than interest. This aligns with the highest standards of Islamic finance as defined by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
Mr. Muhammad Zubair, CEO of AlHuda CIBE, commented on the significance of the issuance:
“We are honored to serve as the Shariah Advisor for the CRDB–Albarakah Sukuk. This issuance is a pioneering initiative that demonstrates the growing role of Islamic finance in Tanzania and the wider East African region. By structuring this Sukuk on the basis of Ijarah, CRDB has ensured that investors gain access to a secure, transparent, and ethical investment avenue. Importantly, the multicurrency structure widens participation, attracting both domestic and international investors. CRDB stands to benefit from this issuance by mobilizing stable, long-term Shariah-compliant funding that will support its financing activities and strengthen its leadership in the Islamic finance industry via CRDB Al Barakah Banking, i.e CRDBs Islamic Banking window operations.”
Considering the current market dynamics, he further highlighted that the global Sukuk market grew from $904.5 billion in 2023 and is projected to reach $2,160.55 billion by 2028. Annual issuance stood at $197.8 billion in 2023 and $193.4 billion in 2024, with expectations of $190–200 billion in 2025. Foreign currency-denominated Sukuk surged by 29% to $72.7 billion in 2024, largely driven by Saudi Arabia, Malaysia, and Indonesia. Meanwhile, sustainable Sukuk issuance increased to $11.9 billion in 2024 (up from $11.4 billion in 2023), with Saudi Arabia accounting for 38% of total issuance.
The Sukuk was structured and arranged in close collaboration with CRDB Albarakah Banking team and CRDB’s Shariah Advisory Board who respectively approved the final structure, ensuring full compliance with Islamic principles.
This issuance marks an important step in broadening the Islamic finance landscape in Africa, paving the way for further innovations in Sukuk structures and cross-border investment opportunities.
Multicurrency Sukuk issuance carries significant benefits for the wider economy, investors, the bank, and other stakeholders, including the Government of Tanzania. By mobilizing Shariah-compliant long-term funding, the Sukuk supports CRDB Bank in expanding its Shariah Compliant financing capacity, thereby channeling capital into productive sectors of the economy. Investors gain access to a secure, ethical, and asset-backed investment option that provides stable returns while adhering to Islamic principles. For the Government of Tanzania, this initiative deepens the domestic capital market, attracts foreign investment through the multicurrency feature, and diversifies funding sources beyond conventional instruments. At a macro level, it strengthens financial inclusion by offering faith-based investment opportunities and positions Tanzania as a regional hub for Islamic finance, benefitting the financial sector and broader economic development.
About Alhuda CIBE:
AlHuda Center of Islamic Banking and Economics (CIBE) is a well-recognized name in Islamic banking and finance industry for research and provides state-of-the-art Advisory Consultancy & Education through various well-recognized modes viz. We provide services in Islamic Financial Product Development, Shariah Advisory, Training, Islamic Microfinance, and Takaful Consultancy, complemented by our well-recognized publications in Islamic Banking and Finance.
We are dedicated to serving the community as a unique institution, advisory and capacity building since 2005. The prime goal has always been to remain stick to the commitments providing Services not only in UAE/Pakistan but all over the world. AlHuda has contributed to the growth of Islamic Banking and Finance in over 104 countries. Learn more at: https://www.alhudacibe.com/
For Media Contact:
Ms. Shaguftta Perveen
Manager Communications,
info@alhudacibe.com
Call: +971 52 865 5523
