RIYADH: The UAE has unveiled its inaugural Sovereign Retail T-Sukuk Program, opening subscriptions to individual investors for the first time in the country’s history.
According to a statement from the Ministry of Finance, the two-year sukuk sized at 50 million Emirati dirhams ($13.6 million) will be run in close collaboration with the Central Bank of the UAE, carries a profit rate of 4.3 percent per annum with half-yearly payouts.
Subscriptions run from June 24 to 30, through a range of approved digital platforms, with a minimum entry point of 1,000 dirhams, making sovereign investment accessible to a broad base of citizens and residents for the first time.
The launch marks a significant step in the UAE’s push to democratize access to government-backed financial instruments.
Unlike the Fractional T-Sukuk and Bonds Initiative introduced in November, which allows investors to buy fractional interests in already-issued securities at prevailing market prices with a minimum of 4,000 dirhams, this program offers direct primary market subscriptions at par value, giving investors a clean entry into newly issued sovereign debt.
The UAE Minister of State for Financial Affairs, Mohamed bin Hadi Al-Hussaini, 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.”
Subscriptions can be made through Dubai Financial Market’s platforms, including the DFM app and iVestor app, as well as the 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.
Al-Hussaini added that the collaboration between the ministry, DFM, Nasdaq Dubai, and the 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, according to the statement.
The ministry noted that investors must obtain an Investor Number, where applicable, before subscribing. Following the close of the subscription period, allocation and issuance are scheduled for July 1, with the sukuk listed and available for trading on Nasdaq Dubai from July 2. Any excess subscription funds will be refunded no later than July 7.
Once listed, investors may trade their holdings on the secondary market through licensed Nasdaq Dubai members, with a market maker and liquidity providers in place to support ongoing trading activity. Nasdaq Dubai will also serve as the central securities depository and settlement platform.
The program is part of the Ministry of Finance’s wider 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.
