Ministry Of Finance Partners With Abu Dhabi Islamic Bank To Launch Retail Sukuk Initiative For Investors

The Ministry of Finance (MoF) has partnered with Abu Dhabi Islamic Bank (ADIB) to launch the "Retail Sukuk" initiative. This collaboration allows citizens and residents to invest in UAE Government Islamic Treasury Sukuk through digital platforms. ADIB is the first bank to join this initiative, offering a secure and accessible investment option.

Investors can now access Islamic Treasury Sukuk (T-Sukuk) via ADIB’s "Smart Sukuk" platform. This platform enables investment in fractional Sukuk with smaller denominations. The minimum investment starts at AED4,000, with increments of AED4,000, up to a maximum of AED28,000 per transaction. Multiple transactions are allowed for flexibility.

The initiative aims to expand the investor base and promote financial inclusion across the UAE. UAE nationals and residents with an Emirates ID or UAE PASS can register online, complete KYC requirements, and create a risk profile on the platform. They can also view Sukuk terms and transaction details easily.

Younis Haji AlKhoori, Under-Secretary of the Ministry of Finance, stated, "This agreement with Abu Dhabi Islamic Bank marks the first step in implementing the Retail Sukuk initiative, reflecting the Ministry’s commitment to advancing the leadership’s vision of economic empowerment and promoting a culture of saving and sustainable investment."

AlKhoori added that this partnership provides individuals with a fully digital, Sharia-compliant investment experience that is simple and secure. It is designed to promote financial stability for families and the wider community. The collaboration exemplifies successful public-private sector cooperation in developing innovative financial instruments.

Jawaan Awaidah Al Khaili, Chairman of Abu Dhabi Islamic Bank, commented on their role as the first partner in this programme: "We are proud to be the first partner in this pioneering programme, which expands investment opportunities for a wider range of investors." He emphasized bridging institutional and retail markets by enabling investments in high-quality government-backed Sukuk.

Broader Framework for Partnerships

This agreement marks the initial phase of a broader framework involving national banks participating in the Retail Sukuk initiative. The goal is to broaden access to Islamic Treasury Sukuk while promoting financial literacy and instilling a culture of saving as a cornerstone for long-term sustainability.

The Ministry confirmed that all issued Sukuk will be listed on ADIB's platform except those nearing maturity. ADIB will offer Retail Sukuk from existing positions through primary allocations or secondary market transactions without needing additional regulatory approvals.

User-Friendly Investment Experience

To ensure transparency and user-friendliness, ADIB will organise educational sessions and introduce a dedicated FAQs section. Regular investor surveys will also be conducted. Participating banks' digital platforms will provide comprehensive details about profit distributions, maturity dates, fees, and early redemption options.

A transparent regulatory framework has been adopted alongside preferential fee structures to boost investor confidence. This approach encourages broader participation in the UAE’s Islamic finance ecosystem while reinforcing innovation and growth within Islamic finance aligned with national strategic goals.

With inputs from WAM