The UAE Ministry of Finance on Tuesday set the annual profit rate for the second issuance of its Sovereign Retail T-Sukuk programme at 5.06 per cent and will open subscriptions to retail investors on September 23, as it seeks to broaden participation in government-backed investment products.
The five-year sukuk issuance has a target size of Dh50 million and will be available for subscription until September 28 through digital channels including the Dubai Financial Market’s (DFM) eIPO platform, the iVestor app, the DFM app and participating banks. The minimum subscription amount is Dh1,000.
The Shariah-compliant investment instrument is open to UAE nationals and residents, providing direct access to a sovereign-backed product. Following allocation and settlement, the sukuk is scheduled to be listed on Nasdaq Dubai and begin trading on October 1. Profit distributions will be paid semi-annually.
The launch follows what the ministry described as strong demand for the inaugural retail sukuk offering and comes as authorities continue efforts to deepen domestic capital markets and encourage savings among individuals.
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, said the second issuance “marks another step forward in strengthening the UAE’s government investment ecosystem.” He added that the new offering builds on “the strong investor appetite and demand generated by the inaugural offering” while providing retail investors with efficient and transparent access through digital subscription channels.
Highlighting the government’s focus on retail participation, Al Hussaini said the ministry is committed to delivering “a seamless, end-to-end subscription experience” in collaboration with its partners, allowing investors to move from application to secondary-market trading through a structured process.
He added that making subscriptions available through approved digital platforms and designated banking channels helps simplify the process for individuals and families while supporting long-term financial planning. “Making subscriptions available through approved digital platforms and designated banking channels helps simplify the process for individuals and families, while offering secure investment options that support long-term financial planning,” he said.
Retail investors who do not already have an Investor Number (NIN) will need to obtain one before placing subscription orders. Sukuk units will be credited to investor accounts after allocation and before the securities begin trading.
Emirates NBD has been appointed lead receiving bank for the issuance, alongside Emirates Islamic, Abu Dhabi Islamic Bank, Ajman Bank, Mashreq, Abu Dhabi Commercial Bank and First Abu Dhabi Bank. Allocation is scheduled for September 29, with issuance and refunds of excess subscription funds on September 30.
The Ministry of Finance said the retail sukuk programme supports its strategy to develop dirham-denominated capital markets, widen the investor base and reinforce the UAE’s position as a global financial hub and a centre for Islamic finance.
Source: Khaleej Times