France’s BNP Paribas and the UK’s Standard Chartered Bank are acting as arrangers on the bond, which is expected to be about $500m in size. The emirate could decide to raise more money through the bond, depending on market demand.

Ras al-Khaimah conducted an international investor roadshow in the first week of July and the bond is expected to be issued in mid-July.

Ras al-Khaimah has an A credit rating from agencies Standard & Poor’s and Fitch Ratings.

In February 2008 the emirate priced its debut sukuk at 115 basis points over the London interbank offered rate (Libor). The deal raised AED1bn ($277m) for the emirate.