UAE doubles size of first retail T-Sukuk offering to Dh100m on high demand
Government-backed Islamic investment begins trading in Dubai after attracting Dh445m
Dubai: The UAE has doubled the size of its first Sovereign Retail T-Sukuk issuance to Dh100 million after receiving Dh445 million in subscription requests, as the government opened a new route for individual investors to buy government-backed Islamic investment products.
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The Ministry of Finance increased the inaugural offering from Dh50 million after demand exceeded expectations by almost nine times. The sukuk has now been listed on Nasdaq Dubai, allowing investors to buy and sell it on the secondary market through authorised brokers.
The strong response marks the UAE's first sovereign sukuk designed specifically for retail investors, expanding access to an asset class that has traditionally been available mainly to institutional investors.
Why was issue doubled?
Investor demand far exceeded the amount initially offered. During the subscription period, which ran from June 24 to June 30, investors placed orders worth Dh445 million, nearly nine times the original Dh50 million issuance. In response, the Ministry of Finance increased the size of the offering to Dh100 million.
What is a retail T-Sukuk?
A sovereign sukuk is an Islamic investment certificate issued by the government to raise funds in a Shariah-compliant way.
Unlike conventional bonds that pay interest, sukuk provide investors with a profit generated through an Islamic financial structure.
The UAE's inaugural retail sukuk was created specifically for individual investors, allowing residents to invest directly in a government-backed security with a relatively low minimum investment.
What return does it offer?
The inaugural sukuk offers:
Profit rate: 4.30% per year
Investment term: Two years
Profit payments: Every six months
Minimum investment: Dh1,000
The securities are now trading on Nasdaq Dubai, meaning investors who missed the subscription period may still be able to buy them through authorised brokers at prevailing market prices.
Who invested across UAE?
The Ministry said the offering attracted broad participation from retail investors across the UAE.
Among the key figures:
Dh445 million in subscription requests
Issue size increased from Dh50 million to Dh100 million
Investors subscribing up to Dh10,000 accounted for 76% of all subscribers
UAE nationals represented 72% of subscribers
Women and investors under 25 together made up 45% of the subscriber base
The figures indicate that the programme attracted participation across different income groups and age categories.
How UAE residents benefit
The listing gives retail investors access to a government-backed investment product that was previously difficult for individuals to access.
It also provides another savings and investment option alongside bank deposits, mutual funds and listed securities, while broadening participation in the UAE's capital markets.
Since the sukuk is listed on Nasdaq Dubai, investors can now buy or sell the securities on the secondary market through authorised brokers, with prices determined by market demand.
