UAE launches second issuance of Sovereign Retail T-Sukuk Program with five-year tenor

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The UAE Ministry of Finance has announced the launch of a second issuance under its Sovereign Retail T-Sukuk Program, featuring a five-year tenor. This initiative follows the remarkable success of the inaugural issuance, which attracted subscription orders worth AED445 million, nearly nine times the initial target of AED50 million, as reported by Economy Middle East.

The new issuance aims to enhance participation among UAE nationals and residents in sovereign investment instruments, reinforcing the UAE’s status as a global financial hub and a leader in Islamic finance. H.E. Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, highlighted that the program empowers all segments of society by providing direct access to Shariah-compliant investment options backed by the UAE Government.

Minimum Subscription Set at AED1,000

This issuance aligns with the Ministry of Finance’s vision to promote financial inclusion and encourage a culture of long-term saving and investment, in line with the UAE’s Year of Family 2026 objectives. Al Hussaini noted that the program serves as a crucial pillar for supporting long-term financial planning and fostering secure investment.

The Sovereign Retail T-Sukuk Program offers a secure, Shariah-compliant investment instrument with a minimum subscription of AED1,000, making it accessible to various segments of society. The Ministry is collaborating with the Dubai Financial Market (DFM), Nasdaq Dubai, and approved banks to provide a seamless digital subscription experience.

Once allocation and settlement are completed, the sukuk will be listed for secondary market trading on Nasdaq Dubai. Al Hussaini reaffirmed the Ministry’s commitment to advancing financial innovation and expanding the investor base for UAE dirham-denominated government debt instruments.

Subscription Channels and Participating Banks

To facilitate retail investors, the approved subscription channels include the DFM’s eIPO platform, the iVestor app, and the digital platforms of participating banks. Emirates NBD will act as the lead receiving bank, with Emirates Islamic, Abu Dhabi Islamic Bank, Ajman Bank, Mashreq, Abu Dhabi Commercial Bank, and First Abu Dhabi Bank also participating.

Record Results from Inaugural Issuance

The inaugural issuance not only exceeded expectations but also attracted a diverse investor base, with 76 percent of demand coming from subscriptions of AED10,000 or less. Notably, 72 percent of the investors were UAE nationals, and young investors under 25, along with women, accounted for 45 percent of total subscribers.

The inaugural sukuk, which had a two-year tenor and offered a 4.30 percent annual profit rate, successfully completed all allocation and settlement stages, with trading commencing on July 2, 2026. The profit rate for the second issuance will be announced on September 22, 2026.

Follow our Business news coverage for related developments.

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