How UAE residents can now buy Islamic government bonds from Dh4,000

Dubai: The UAE has just opened a major new investment channel for individuals. For the first time, citizens and residents can now buy government-backed Islamic Treasury Sukuk, known as Retail Sukuk — a safe, Shariah-compliant savings and investment option starting from Dh4,000.

What is UAE's retail sukuk?

Launched by the UAE Ministry of Finance, the Retail Sukuk programme lets individuals invest directly in federal government sukuk through digital, fractional platforms operated by UAE banks.

Until now, these Treasury Sukuk were available only to institutions.
Now, retail investors can join, making government sukuk part of their personal savings and investment plans.

Key features:

• Minimum investment: Dh4,000

• Shariah-compliant: fully aligned with Islamic finance principles

• Dirham-denominated: no foreign exchange risk

• Backed by the UAE government: low-risk profile

• Digital access: invest easily through licensed UAE banks

Why it helps UAE residents

This marks a turning point in the UAE’s investment landscape. It combines accessibility, digital convenience, and government-level safety — three elements that appeal to cautious savers and first-time investors.

1. Safe, government-backed investment: Retail Sukuk are issued by the UAE government, making them among the safest assets available to residents.

2. Shariah-compliant income: Instead of interest, investors earn returns through profit-sharing or lease-based structures — ideal for those seeking Islamic investments.

3. Low entry point: Dh4,000 makes this accessible to young professionals and middle-income residents who want to start saving and investing.

4. Easy digital access: You can invest through UAE banks’ online platforms — no need for complex brokerage accounts or large capital outlays.

5. Local diversification: It lets you build wealth in dirhams, supporting the UAE economy while diversifying away from foreign assets.

Boon for UAE’s Islamic finance

Bashar Al-Natoor, Global Head of Islamic Finance at Fitch Ratings, calls the move a milestone in the UAE’s Islamic finance journey.

“The UAE’s Retail Sukuk initiative offers a new avenue for nationals and residents to participate in Shariah-compliant, government Treasury Sukuk (T-Sukuk) through digital, fractional platforms operated by UAE banks,” Al-Natoor said.

He noted that effective outreach will depend on investor education, transparent onboarding, and strong disclosure standards to build long-term trust among new investors.

Islamic finance turns accessible

The UAE’s debt market is nearing $400 billion, making it the region’s second largest after Saudi Arabia. Opening the sukuk market to retail investors strengthens the country’s Islamic finance ecosystem and deepens local capital markets.

Al-Natoor added that “innovations such as ESG-linked products, digital platforms, and fractional investment models are key to increasing market access and enhancing liquidity.”

What investors should know

The programme is still developing. Details on distribution channels, secondary trading, and investor protections will emerge as banks roll out platforms.

Learning from Malaysia, Indonesia, and Saudi Arabia, the UAE is expected to emphasise transparency, regulation, and financial literacy to sustain long-term demand.

How to invest in UAE retail sukuk

1. Check eligibility with your UAE bank.

2. Learn how sukuk generate returns and what risks apply.

3. Start with the Dh4,000 minimum.

4. Use official, regulated digital platforms only.

5. Track your profits and tenor through your bank’s portal.

Bottom line?

The UAE Retail Sukuk gives ordinary residents access to a secure, government-backed Islamic investment — a first in the country’s financial history.

It blends Shariah compliance, digital accessibility, and stable returns, helping residents build disciplined savings habits while participating in the UAE’s growth story.

As Al-Natoor said, ongoing monitoring of retail participation and transparency “will be essential to ensure sustainable, inclusive growth.”

For UAE investors seeking safe, ethical, and long-term opportunities, the Retail Sukuk is worth serious attention.