UAE's second retail treasury sukuk begins trading on Nasdaq Dubai

Dubai: The UAE Federal Government's second retail treasury sukuk starts trading on Nasdaq Dubai on October 1. This will give small investors another way to buy government-backed Islamic paper from as little as Dh1,000.

The UAE Gov Retail T-Sukuk 5.06% 30Sep2031 was admitted to trading at 10am Dubai time, under the symbol UAESUKUK0931. The issuer is the UAE Federal Government Sukuk Programme Ltd, and the issue size is Dh50 million.

The sukuk carries a fixed coupon of 5.06 per cent and matures on 30 September 2031. Distributions are paid semi-annually, on 30 March and 30 September. For an investor holding the minimum denomination of Dh1,000, that works out to roughly Dh25.30 every six months, or about Dh253 in total over the five-year term, with the principal returned at maturity.

The low entry point is the main draw. At Dh1,000 a unit, the sukuk is built for individual savers rather than institutions, offering a fixed income stream backed by the federal government at a modest ticket size.

Because the sukuk is listed, holders are not locked in until 2031. They can sell on the exchange if they need access to their money earlier. Prices before maturity will move with market yields, so the sale value can be higher or lower than the original Dh1,000. With an issue size of Dh50 million, trading volumes may be limited, which could affect how easily investors can buy or sell at their preferred price.

The listing is the second retail sukuk from the federal government, pointing to a continued effort to widen access to government debt for everyday investors and to deepen the local Islamic finance market. Retail-focused issues like this give residents a regulated alternative to bank deposits, though the sukuk is not a deposit product and returns are not guaranteed against market movements if sold early.