Emirates Islamic Pioneers Fractional Sukuk For Enhanced Investor Access

Emirates Islamic has recently unveiled its Fractional Sukuk product, marking a significant milestone in the financial sector by being the first Islamic bank in the region to offer such an investment opportunity. This innovative product is designed to lower the entry barrier for investors aiming to delve into the international Sukuk markets, with an initial investment threshold set at USD 25,000, a fraction of the usual USD 200,000 typically required.

The introduction of Fractional Sukuk by Emirates Islamic is a strategic move to democratize access to Shariah-compliant investments. This offering is particularly appealing for retail investors seeking to diversify their portfolios and establish an alternative source of income while adhering to Islamic financial principles. The flexibility of creating customized Sukuk portfolios based on individual investment goals, risk tolerance, and other preferences stands out as a key feature of this product.

Moreover, the option for investors to liquidate their positions through Emirates Islamic enhances the liquidity aspect, making it an attractive proposition for those who wish to have access to their funds when needed. This feature underscores the bank's commitment to providing versatile and customer-centric financial solutions.

Mohamed Al Hadi, Acting Head of Retail Banking and Wealth Management at Emirates Islamic, expressed pride in leading the regional market with such a pioneering initiative. "Our Fractional Sukuk offering aligns with this vision," he stated, highlighting the bank's dedication to innovation and Shariah-compliant product offerings.

Ebrahim Qayed, Head of Treasury and Markets at Emirates Islamic, also commented on the launch, emphasizing the dual benefits of risk management and financial empowerment that Fractional Sukuk offers to investors. He noted, "As a pioneering Shariah-compliant bank, we are glad to provide investors access to Regular income markets at a lower investment threshold and unlock new financial opportunities for them."

This strategic initiative by Emirates Islamic not only broadens the spectrum of investment opportunities available to a wider audience but also reinforces the bank's position as a leader in innovative and Shariah-compliant financial services. By facilitating easier access to the Sukuk market, Emirates Islamic is set to play a pivotal role in the growth and development of Islamic finance in the region.

With inputs from WAM