The UAE opens the sovereign sukuk market to individual investors / photo – file
For the first time, UAE residents and citizens will be able to invest directly in government-backed Islamic treasury bonds for an amount not exceeding AED 1,000, opening up a market that was previously largely reserved for institutional investors.The UAE Ministry of Finance has launched the country’s first sovereign retail sukuk programme, a new Sharia-compliant investment product designed to encourage savings, expand financial inclusion and give individuals access to government investment opportunities. This initiative was developed in cooperation with the Central Bank of the United Arab Emirates, and represents a major expansion in the field of investment in the retail sector in the country.Officials say the program will allow ordinary investors to participate in sovereign-backed financial instruments through a simple sign-up process offered by participating UAE banks.
What are retail sukuks in the UAE?
Treasury Sukuks, or T-Sukuks, are a Sharia-compliant government investment instrument that operates similarly to government bonds but is structured according to the principles of Islamic finance.Until now, these government-issued sukuks have largely been available to institutional investors only.
The new retail program changes that by allowing individuals to invest directly in UAE government-backed sukuks in small denominations.Mohammed bin Hadi Al Husseini, UAE Minister of State for Financial Affairs, said that the initiative reflects the government’s commitment to developing innovative financial products that support long-term savings, financial planning, and broader participation in the economy.The program also aims to deepen local capital markets and enhance the UAE’s position as a leading center for Islamic finance.
How to apply Retail Sukuks in the United Arab Emirates
The Ministry of Finance confirmed that investors will be able to subscribe through participating banks using digital platforms and designated subscription channels. The process is expected to resemble the IPO-style subscription framework commonly used in the financial markets in the UAE.Participating banks announced so far include:
Emirates NBD Bank (main receiving bank)Emirates Islamic Bank Abu Dhabi Islamic Bank (Abu Dhabi Islamic Bank)- Ajman Bank
- Mashreq Bank
Investors will be able to apply through these institutions once the first issue is officially opened for subscription.The ministry said additional details, including subscription dates, profit rates, duration and timelines for allocation, will be announced soon.The minimum investment is set at just AED 1,000, significantly lowering the barrier for residents and citizens who want exposure to government-backed investments. Officials say the move aims to help individuals and families build long-term savings and diversify their investment portfolios through a regulated financial instrument.This initiative follows previous retail sukuk programs that required larger investment amounts, making the latest issuance more accessible to first-time investors and small savers.
Can investors resell their own Sukuks?
Yes. One of the main advantages of the program is that the sukuks are expected to be listed on Nasdaq Dubai after their issuance.Once listed, investors will be able to buy and sell their properties on the secondary market instead of waiting until maturity.
Nasdaq Dubai will also serve as the central platform for the deposit and settlement of securities for the programme.This feature gives investors greater flexibility and liquidity while maintaining access to a government-backed investment product.
Why is this important?
The launch represents a major shift in the investment landscape in the UAE.By opening sovereign sukuks to individual investors, the government is giving residents and citizens access to investment opportunities that were previously available mainly to large institutions.
Officials believe the program will encourage a stronger savings culture, improve financial literacy, and expand participation in local capital markets.For investors, the appeal lies in three main factors: government support, Sharia compliance, and low minimum investment. With subscriptions starting from AED 1,000, the program is expected to attract experienced investors and newcomers looking for a safer long-term investment option.
