The United Arab Emirates has introduced its first Sovereign Retail T-Sukuk Program, enabling individual investors to subscribe directly to government-backed Islamic bonds for the first time. The two-year sukuk, valued at 50 million Emirati dirhams ($13.6 million), carries a profit rate of 4.3 percent per annum with semi-annual payouts, according to a statement from the Ministry of Finance.
Subscription Details and Accessibility
Subscriptions opened on June 24 and will run through June 30, with a minimum investment of 1,000 dirhams. This low entry point makes sovereign investment accessible to a broad base of citizens and residents. The offering is conducted in close collaboration with the Central Bank of the UAE (CBUAE) and through approved digital platforms, including Dubai Financial Market’s DFM app and iVestor app, as well as digital channels of Emirates NBD Bank, the appointed Lead Receiving Bank.
Additional participating banks include Emirates Islamic Bank, Abu Dhabi Islamic Bank, Ajman Bank, and Mashreq Bank. Investors must obtain an Investor Number where applicable before subscribing.
Significance and Comparison with Previous Initiatives
This program differs from the Fractional T-Sukuk and Bonds Initiative introduced in November, which allowed investors to buy fractional interests in already-issued securities at market prices with a minimum of 4,000 dirhams. The new Retail T-Sukuk offers direct primary market subscriptions at par value, providing a clean entry into newly issued sovereign debt.
Mohamed bin Hadi Al-Hussaini, UAE Minister of State for Financial Affairs, said the initiative “marks a pivotal milestone in bolstering the readiness of the UAE’s sovereign investment ecosystem by providing structured, fully digital subscription channels that enable individual investors to access government investment products efficiently and transparently through approved platforms.”
Institutional Collaboration and Trading
Al-Hussaini added that collaboration between the ministry, DFM, Nasdaq Dubai, and designated receiving banks represents an effective institutional model for supporting the offering process. “This collaboration contributes to providing a secure and well-structured experience for individual investors while strengthening the readiness of the financial infrastructure to support this type of sovereign issuance,” he said.
After the subscription period closes, allocation and issuance are scheduled for July 1, with the sukuk listed and tradable on Nasdaq Dubai from July 2. Any excess subscription funds will be refunded no later than July 7. Once listed, investors may trade holdings on the secondary market through licensed Nasdaq Dubai members, with a market maker and liquidity providers supporting ongoing trading activity. Nasdaq Dubai will also serve as the central securities depository and settlement platform.
Strategic Goals
The program is part of the Ministry of Finance’s broader strategy to expand public participation in the UAE’s financial ecosystem and foster a culture of long-term saving and investment through Shariah-compliant instruments.
