The sukuk has a tenor of five years and was arranged by Standard Chartered, Dubai Islamic Bank and Badr al-Islami, the Islamic banking arm of Mashreqbank.

Saudi Arabia’s Sabb has also issued a five-year sukuk for SR1.7bn ($453m), which was priced at Saudi interbank offered rate plus 80 basis points.

The two deals are expected to be among the last to be completed before a slowdown in activity over the summer months and Ramadan.

According to the HSBC/DIFX GCC sukuk index, the average price of sukuk is more than 260 basis points over the London interbank offered rate (libor).