Post by : Badri Ariffin

The UAE Ministry of Finance has officially inaugurated and listed the nation's inaugural Sovereign Retail T-Sukuk Programme on Nasdaq Dubai, significantly enhancing investment prospects for individual investors and fortifying the country's financial ecosystem.

The event at Nasdaq Dubai featured Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, ringing the opening bell at the Dubai International Financial Centre (DIFC), marking the commencement of secondary market trading for this government-backed initiative.

Unexpectedly High Demand from Investors

This initial offering of the Sovereign Retail T-Sukuk Programme garnered remarkable interest throughout its subscription phase.

Investment requests soared to AED445 million, nearly nine times the original target of AED50 million. In response to this enthusiastic demand, the Ministry of Finance expanded the total issuance to AED100 million.

The subscription took place from 24 June to 30 June 2026, showcasing robust trust in government-backed Islamic Shariah-compliant investment options.

Diverse Participation from Retail Investors

The initiative captured a considerable pool of retail investors from across the UAE.

Investors who subscribed up to AED10,000 constituted the majority, representing 76 percent of all participants, with UAE nationals making up 72 percent of this demographic.

Notably, young investors below 25 and women significantly contributed, accounting for 45 percent of all subscriptions. These results illustrate the program's effectiveness in promoting financial accessibility and encouraging broader participation in government investment schemes.

Vision for Sustainable Financial Growth

In his address, Mohamed bin Hadi Al Hussaini emphasized the UAE's commitment to fostering a resilient and inclusive economy with advanced financial infrastructures that adhere to global standards.

He articulated that the listing of the first Sovereign Retail T-Sukuk Programme embodies the Ministry's long-term mission aimed at enhancing domestic capital markets while diversifying funding sources. The initiative also offers secure investment alternatives that contribute to the UAE's enduring financial stability.

Al Hussaini highlighted that the extraordinary subscription rates reflect a growing public awareness of finances, reinforcing the program's success in widening access to government investment options and facilitating financial inclusion for all societal segments.

Media Briefing on Program Benefits

Post-ceremony, the Ministry of Finance organized a media briefing led by Younis Haji AlKhoori, Undersecretary of the Ministry of Finance.

He characterized the listing as a pivotal move towards cultivating a more sustainable economy while empowering individuals to play a role in the UAE's future development.

AlKhoori noted the Ministry's collaboration with the Central Bank of the UAE and financial partners to create a program that aligns the nation’s sovereign financing objectives with individual investors’ long-term saving strategies.

Additionally, he emphasized the program’s aim to support the objectives of the Year of Family 2026 by providing financial solutions that bolster household resilience and advocate for responsible financial decisions.

According to AlKhoori, the strong subscription rate mirrors the growing investment awareness among UAE nationals and residents as well as their trust in the Government's financial solidity and secure investment conditions.

He reiterated the Ministry’s dedication to enhancing financial inclusion and expanding capital markets by providing accessible, Shariah-compliant investment opportunities that prioritize transparency and minimize risk.

Nasdaq Dubai Embraces the Listing

Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), remarked that the listing signifies a continued advancement in the UAE’s capital markets.

He explained that this program lowers the threshold for access to government-supported fixed-income investments, facilitating participation via a regulated and transparent marketplace, thus enabling more retail investors to engage in an investment category previously challenging to access.

Ali also expressed pride in Nasdaq Dubai's initiative to support the Ministry of Finance in broadening participation in the financial markets and elevating investment accessibility.

Investment Characteristics and Trading Information

During the ceremony, the Ministry of Finance shared comprehensive details regarding the trading process for the Sovereign Retail T-Sukuk Programme and its primary investment features.

The inaugural issuance has a two-year tenor and offers a 4.30 percent annual return, with profits disbursed semi-annually.

The sukuk are currently tradable on the secondary market through authorized brokerage firms, supported by market makers and liquidity providers to enhance market fluidity, ensure effective price determination, and facilitate seamless trading.

A minimum investment requirement of AED1,000 allows a wider array of individual investors to access government-backed investment options.

Collaborative Effort Behind the Programme

The Ministry of Finance rolled out the Sovereign Retail T-Sukuk Programme in close cooperation with the Central Bank of the UAE (CBUAE), Nasdaq Dubai, and the Dubai Financial Market (DFM).

Numerous banking partners, including Emirates NBD Bank, Emirates Islamic Bank (EIB), Abu Dhabi Islamic Bank (ADIB), Mashreq Bank, and Ajman Bank, have also played a role in supporting this initiative.

Encouraging UAE Capital Markets

With this listing, the government extends Shariah-compliant investment options, enhancing access through a transparent and regulated marketplace. This move aims to bolster the growth of the UAE's domestic capital markets while stimulating long-term savings and investment among individuals.

The successful launch further solidifies Nasdaq Dubai's standing as a leading global exchange for Sukuk and fixed-income listings.

Currently, the exchange features over US$98.6 billion in active Sukuk listings and over US$141 billion in outstanding debt securities, catering to issuers from both regional and international markets while reinforcing Dubai's position as a hub for Islamic finance.

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