Abu dhabi: The Ministry of Finance (MoF) has entered into a cooperation agreement with Abu Dhabi Islamic Bank (ADIB), marking the bank as the inaugural participant in the Ministry's 'Retail Sukuk' initiative. This initiative is designed to facilitate easy and secure investment in UAE Government Islamic Treasury Sukuk through innovative digital platforms for citizens and residents.
According to Emirates News Agency, individual investors in the UAE can now invest in Islamic Treasury Sukuk (T-Sukuk) through ADIB's 'Smart Sukuk' platform. This platform allows investment in fractional Sukuk in smaller denominations. The initiative aligns with the Ministry's objectives to expand the investor base and enhance financial inclusion across the UAE.
The platform enables investors to start with a minimum investment of AED4,000, in increments of AED4,000, up to a maximum of AED28,000 per transaction, with the option to conduct multiple transactions. UAE nationals and residents possessing an Emirates ID or UAE PASS can register online, fulfill KYC requirements, and establish a risk profile directly on the platform, while also accessing Sukuk terms and transaction details.
Younis Haji AlKhoori, Under-Secretary of the Ministry of Finance, stated, "This agreement with Abu Dhabi Islamic Bank marks the first step in implementing the Retail Sukuk initiative, reflecting the Ministry's commitment to advancing the leadership's vision of economic empowerment and promoting a culture of saving and sustainable investment. Our partnership with ADIB exemplifies successful collaboration between the public and private sectors in developing innovative, government-backed financial instruments that support sustainable economic growth."
Jawaan Awaidah Al Khaili, Chairman of Abu Dhabi Islamic Bank, expressed pride in being the first partner in this pioneering programme, which broadens investment opportunities for a wider range of investors. By bridging the gap between institutional and retail markets, the bank enables everyone to invest in high-quality, low-risk, government-backed Sukuk. This partnership underscores ADIB's commitment to innovation, financial inclusion, and the growth of Islamic finance in line with the UAE's strategic vision.
All Sukuk issued by the Ministry will be listed on the platform, except those nearing maturity, without necessitating additional regulatory approvals. ADIB will offer the Retail Sukuk from its current Sukuk positions through primary allocations or secondary market transactions. The bank will also conduct awareness and educational sessions, introduce a dedicated FAQs section, and perform regular investor surveys to ensure a transparent and user-friendly investment experience.
The Ministry of Finance highlighted that this agreement signifies the initial phase of a broader framework of partnerships with national banks participating in the Retail Sukuk initiative. The initiative aims to widen access to Islamic Treasury Sukuk, promote financial literacy, and instil a culture of saving and financial responsibility as a cornerstone of long-term financial sustainability in the UAE. The Ministry also noted that the digital platforms of participating banks will allow investors to access comprehensive Sukuk details, including profit distributions, maturity dates, applicable fees, and early redemption options. A transparent regulatory framework and preferential fee structure have been adopted to bolster investor confidence and encourage broader participation in the UAE's Islamic finance ecosystem.