Assalaam alaikum - ADIB launches retail sukuk access for individuals in the UAE
Assalaam alaikum - Abu Dhabi Islamic Bank (ADIB) has become the first bank to take part in the UAE’s new retail sukuk scheme, allowing everyday people to invest in Sharia‑compliant government sukuk that were previously open only to institutions.
Under the arrangement, UAE residents and citizens with an Emirates ID or UAE Pass can use ADIB’s Smart Sukuk platform to buy fractional Islamic treasury sukuk (T‑sukuk) in smaller amounts. The Ministry of Finance says the minimum purchase is Dh4,000 and investors can buy up to Dh28,000 per transaction in Dh4,000 steps, and they may make multiple purchases.
Registration, KYC and risk profiling can be completed online, and investors can view sukuk terms and transaction details on the platform. “This provides individuals with a fully digital, Sharia‑compliant investment experience that is simple, secure and aims to support financial stability for families and the community,” said Younis Haji AlKhoori, undersecretary at the Ministry of Finance.
The UAE is the second‑largest debt capital market in the Gulf and raises funds for the federal government through dirham‑denominated treasury sukuk. The ministry noted it raised Dh1.1 billion in an October auction that drew Dh4.57 billion in bids, an oversubscription of about 4.2 times.
Bashar Al Natoor, global head of Islamic finance at Fitch Ratings, welcomed the retail sukuk move as part of the UAE’s national Islamic finance strategy. He said digital, fractional sukuk with strong Sharia oversight can increase transparency and lower technical barriers, but success will depend on investor education, smooth onboarding and clear disclosure to build trust among new retail participants. Experience from countries like Malaysia, Indonesia and Saudi Arabia shows the value of regulatory clarity and financial literacy.
All sukuk issued under the programme will be shown on ADIB’s platform (except those close to maturity) without extra regulatory approvals, the ministry said. ADIB will provide sukuk from its existing holdings via primary allocations or secondary market trades. “By closing the gap between institutional and retail markets, we are enabling people to invest in high‑quality, low‑risk, government‑backed sukuk,” said Jawaan Al Khaili, ADIB chairman.
This agreement is the first phase of a wider framework that will include other national banks. Participating banks’ digital platforms will display details such as profit distributions, maturity dates, fees and early redemption options. The ministry added that a transparent regulatory framework and preferential fee structure are in place to boost investor confidence and broaden participation in the UAE’s Islamic finance sector.
Looking ahead, regulators and market participants should maintain clear rules and strong digital infrastructure to grow trust in retail Islamic finance. Ongoing monitoring of retail uptake, secondary market activity and cross‑border prospects will help assess whether the initiative deepens market participation and supports stable, inclusive growth in UAE retail finance.
May Allah guide us to sound and halal means of safeguarding and growing our families’ wealth. Wa alaikum assalaam.
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