Dubai launched $750 million in Islamic bonds on Sunday to partially finance a planned $4.1 billion expansion of the Gulf Arab emirate's airport.
Dubai Islamic Bank is lead manager for the government bonds, called Ijara Sukuk and issued through Dubai's civil aviation department, a statement said, calling it the largest such Islamic issue in the world.
The statement did not give the maturity or the terms of the bonds.
Dollar-denominated Sukuk bonds are structured to comply with Islamic sharia law, which forbids the payment of interest. Owners will be paid from lease income on airport buildings.
The launch signalled the start of a regional roadshow to promote the bonds, which are expected to be listed on the Dubai and Luxembourg bourses, said the statement.