Abu dhabi: The Ministry of Finance (MoF) has signed the 3rd agreement under the 'Retail Sukuk' initiative with Emirates Islamic Bank, one of the leading Islamic financial institutions in the UAE, enabling UAE citizens and residents to invest in Treasury Sukuk (T-Sukuk) through its innovative digital platform.
According to Emirates News Agency, the initiative will enable UAE citizens and residents to invest in fractional T-Sukuk in smaller denominations through the EI + Mobile Banking App. With a minimum investment of AED4000, investors will receive a seamless and secure digital experience, in line with the Ministry's efforts to broaden the investor base and promote financial inclusion across the UAE. The initiative aims to broaden access to T-Sukuk, promote financial literacy, and instil a culture of saving and financial responsibility as a cornerstone of long-term financial sustainability in the UAE.
UAE nationals and residents with an Emirates ID or UAE PASS can complete registration online, fulfil KYC requirements, and create a risk profile directly on the platform, while also viewing T-Sukuk terms and transaction details.
Mariam Mohamed Al Amiri, Assistant Under-Secretary of Government Finance Management at the Ministry of Finance, stated that the collaboration with Emirates Islamic Bank will significantly widen the reach of the Ministry's initiatives to offer government financial instruments directly to individuals through secure and advanced digital channels. With leading national institutions joining the 'Retail Sukuk' initiative, the efforts to enhance financial inclusion and give more community members the opportunity to access stable, government-backed investment instruments are being strengthened.
Al Amiri further noted that the initiative helps instill a culture of saving and sustainable investment among Emiratis and residents, while also strengthening the growth of the Islamic finance sector and supporting the development of local capital markets. By expanding institutional participation in offering secure and transparent financial products, the foundations of financial sustainability will be reinforced, contributing to the growth of key sectors and the UAE's sustainable economic development.
Farid AlMulla, Chief Executive Officer of Emirates Islamic, expressed pride in partnering with the Ministry of Finance for the 'Retail Sukuk' initiative, reaffirming Emirates Islamic's prominence as a leading Shariah-compliant bank in the UAE. Enabling T-Sukuk on the EI + Mobile Banking App highlights the bank's commitment to driving Islamic finance innovation.
Mohammad Kamran Wajid, Deputy Chief Executive Officer of Emirates Islamic, added that the Retail Sukuk initiative by the Ministry of Finance is a groundbreaking innovation. Emirates Islamic's focus remains on developing and delivering sophisticated products that cater to the evolving requirements of retail investors, thereby providing access to wealth-building opportunities while adhering to the principles of Islamic Sharia.
All T-Sukuk issued by the Ministry will be listed on the Emirates Islamic platform. Emirates Islamic offers a seamless experience for investors to subscribe or trade by providing the treasury instruments from its existing positions through primary allocations or secondary market transactions. The bank will also ensure a transparent and user-friendly investment experience by organising awareness and educational sessions, introducing a dedicated FAQs section, and conducting regular investor surveys.