Abu Dhabi Islamic Bank (ADIB) has successfully tested fractional Sukuk technology, aiming to make Sukuk investments more accessible to retail customers. This initiative follows initial approval from the UAE’s Regulations Lab, under the Securities and Commodities Authority (SCA).
Currently, entering the Sukuk market requires a minimum investment of $200,000. ADIB’s fractional Sukuks will allow retail investors to start with just $1,000, broadening access to fixed-income financial products.
The collaboration aims to create flexible laws for testing fractional Sukuks, ensuring safety and risk mitigation during the technology’s experimental phase. This will foster a secure environment for innovation and expedite the development of fractional Sukuks.
“Sukuks are a great asset class that meets Islamic finance principles, we want to make it more easily accessible to retail investors,” said Mohamed Abdelbary, ADIB Group CEO. “As part of our 2035 vision to become the world’s most innovative Islamic bank, we are forging ground-breaking new partnerships with FinTechs to deliver pioneering initiatives to meet the evolving customer needs.”
Under the agreement, a legislative framework will be established to test the technology, allowing investors to purchase fractional shares of corporate Sukuks without substantial capital.
