Ministry Of Finance Expands Retail Sukuk Initiative With Emirates Islamic Bank Agreement

The Ministry of Finance (MoF) has entered into its third agreement under the "Retail Sukuk" initiative with Emirates Islamic Bank. This collaboration allows UAE citizens and residents to invest in Treasury Sukuk (T-Sukuk) via a digital platform. The initiative aims to broaden access to T-Sukuk, promote financial literacy, and instil a culture of saving and financial responsibility as a cornerstone of long-term financial sustainability in the UAE.

Investors can now engage with fractional T-Sukuk through the EI + Mobile Banking App, starting with a minimum investment of AED 4000. This digital approach aligns with the Ministry's goals to expand the investor base and enhance financial inclusion across the UAE. The platform offers a seamless and secure experience for users.

UAE nationals and residents possessing an Emirates ID or UAE PASS can register online, complete KYC requirements, and establish a risk profile directly on the platform. They can also access T-Sukuk terms and transaction details conveniently. This ease of access is part of efforts to make government-backed investment instruments more accessible.

Mariam Mohamed Al Amiri, Assistant Under-Secretary of Government Finance Management at MoF, stated that collaborating with Emirates Islamic Bank significantly broadens the reach of government financial instruments. She noted that this partnership strengthens financial inclusion by providing individuals direct access to stable investment options through advanced digital channels.

Al Amiri also highlighted that this initiative fosters a culture of saving among Emiratis and residents while bolstering the Islamic finance sector's growth. By expanding institutional participation in offering secure products, it supports local capital markets' development and contributes to sustainable economic growth in the UAE.

Farid AlMulla, CEO of Emirates Islamic, expressed pride in partnering with MoF for this initiative. He emphasized that enabling T-Sukuk on their mobile app demonstrates their commitment to driving innovation in Islamic finance.

Innovative Financial Solutions

Mohammad Kamran Wajid, Deputy CEO of Emirates Islamic, described the Retail Sukuk initiative as groundbreaking. He stressed that their focus remains on developing sophisticated products for retail investors, providing wealth-building opportunities while adhering to Sharia principles.

The broader framework for partnerships includes listing all T-Sukuk issued by MoF on Emirates Islamic's platform. The bank facilitates seamless subscription or trading experiences by offering treasury instruments from existing positions through primary allocations or secondary market transactions.

To ensure transparency and user-friendliness, Emirates Islamic organises educational sessions, introduces a dedicated FAQs section, and conducts regular investor surveys. These efforts aim to provide investors with comprehensive support throughout their investment journey.

With inputs from WAM