alert

Retail Sukuk

Overview

Start investing from AED 4,000

The Ministry of Finance (MoF) has introduced the Retail Sukuk Initiative, allowing UAE citizens and residents to invest directly in Shariah-compliant, Treasury Sukuk (T-Sukuk).This marks a significant step in expanding inclusive access to sovereign investment instruments, offering individuals the opportunity to invest in the same secure, high-quality Sukuk that were previously limited to institutional investors.

The initiative reflects the UAE’s commitment to financial inclusion, innovation, and long-term savings, in line with its vision to deepen domestic capital markets and strengthen the Islamic finance ecosystem.

Objectives

Broaden access to sovereign investment opportunities for citizens and residents.

Encourage financial literacy and long-term savings among individuals.

Support the development of the domestic capital market and the AED yield curve.

Promote inclusive participation in government-backed Islamic financial instruments.

Strengthen the UAE’s position as a global hub for Islamic finance and innovation.

Investment Structure

Retail investors can purchase smaller denominations of the UAE Treasury Sukuk (T-Sukuk) through fractionalized digital investment platforms operated by participating banks. Each fractional T-Sukuk represents a pro-rata ownership interest in the underlying government Sukuk, mirroring its structure, characteristics, and profit distribution schedule.

The T-Sukuk are issued in UAE Dirhams (AED) under a Sharia-compliant Ijarah/Murabaha structure, ensuring adherence to Islamic financial principles while offering stable, low-risk investment returns.

Who Can Invest in Fractionalized T-Sukuk

•

All UAE residents holding a valid Emirates ID are eligible to invest in the fractionalized T-Sukuk through the participating banks’ digital platforms.

•

Both new and existing bank clients can invest in fractionalized T-Sukuk, and accounts can be opened digitally in accordance with each bank’s terms and conditions.

Investment Details

Minimum Investment

Maturity

Profit Distribution

Fees

Transparency and Liquidity

The participating banks’ digital platforms provide investors with:

Real-time accessto holdings, accrued profits, and maturity schedules.

Transparent pricing linked directly to secondary market rates.

Two-sided quotes (buy and sell) at all times to ensure liquidity and fair pricing.

Taxation

The UAE does not impose personal income tax; therefore, investors are not subject to any tax on profits or principal.

However, applicable taxes prescribed under UAE law (such as VAT) will apply to transactions or custody fees charged by participating banks.

Terms & Conditions

Investors should refer to the participating banks’ digital platforms for detailed terms, risk disclosures, and account requirements. The T-Sukuk offered through these platforms are non-transferable to other institutions and are subject to market conditions.