For the first time, UAE residents can now invest in government-backed Islamic Treasury Sukuk, also known as Retail Sukuk, with a minimum entry point of AED 4,000.
This initiative, rolled out by the UAE Ministry of Finance, allows investors to tap into the nation’s stable financial ecosystem through a Shariah-compliant model.
The Retail Sukuk represents a strategic expansion of the UAE’s financial offerings and marks a departure from the past when such government bonds were exclusively available to institutional investors. Now, individual residents and UAE nationals can integrate these government-backed securities into their savings and investment strategies via platforms operated by UAE banks.
Each Retail Sukuk is dirham-denominated, eliminating foreign exchange risk, thus appealing to those keen on securing their investments in the local currency. The sukuk is designed to comply with Islamic finance principles, offering returns through profit-sharing or lease arrangements rather than interest.
The entry threshold of AED 4,000 democratises access to a traditionally exclusive marketplace, aligning with the broader financial inclusivity goals of the UAE. The ease of digital access through established UAE banks simplifies the investment process, potentially appealing to young professionals and middle-income earners who can now easily integrate Sukuk into their financial planning.
In November, The Ministry of Finance signed a cooperation agreement with Abu Dhabi Islamic Bank (ADIB), making it the first bank to join the Ministry’s newly launched initiative. The initiative aims to enable citizens and residents to invest easily and securely in UAE Government Islamic Treasury Sukuk through innovative digital platforms.
His Excellency Younis Haji AlKhoori, Undersecretary of the Ministry of Finance, said: “This agreement with Abu Dhabi Islamic Bank marks the first step in implementing the Retail Sukuk initiative, reflecting the Ministry’s commitment to advancing the leadership’s vision of economic empowerment and promoting a culture of saving and sustainable investment. Our partnership with ADIB exemplifies successful collaboration between the public and private sectors in developing innovative, government-backed financial instruments that support sustainable economic growth.”
He continued, “Through this agreement, we are providing individuals with a fully digital, Sharia-compliant investment experience that is simple, secure, and designed to promote financial stability for families and the wider community.”
Through the new platform, investors can start with a minimum investment of AED 4,000, in increments of AED 4,000, up to a maximum of AED 28,000 per transaction. Investors also have the flexibility to make multiple transactions.
New investors can use their Emirates ID or UAE Pass to register online and create a risk profile directly. They will then be able to view Sukuk terms and any transaction details.
