UAE Unveils Retail Sukuk for Local Investors

Post by : Bianca Suleiman

Dubai — For the first time ever, both citizens and residents of the UAE can now invest directly in government-supported Islamic Treasury Sukuk, referred to as Retail Sukuk. Historically available only to institutions, this new initiative empowers individual investors to engage in a secure and Shariah-compliant savings and investment option beginning at just Dh4,000.

Understanding Retail Sukuk

Retail Sukuk are Islamic bonds issued by the federal government that offer returns based on profit-sharing or lease agreements, rather than traditional interest. Fully compliant with Shariah law and denominated in dirhams, they eliminate any risk associated with foreign exchange.

Highlighted Features

• Minimal Investment Requirement: Start investing with a low entry point of Dh4,000.

• Government Assurance: Issued by the UAE federal government, ensuring a low-risk investment.

• Shariah-Compliant Earnings: Profits derived from ethical Islamic financial practices.

• Digital Platform Access: Investments can be managed online via licensed banks in the UAE.

• Boost Local Economy: Facilitates wealth growth in dirhams while fortifying the national financial landscape.

Significance for UAE Residents

The Retail Sukuk initiative paves the way for younger professionals and middle-income families to engage in disciplined investment practices. By merging convenience and ethical finance, it offers a distinctive avenue in the UAE's advancing financial sector.

This program further enhances the Islamic finance framework in the nation, which has predominantly been institutional. By welcoming retail participation, the UAE is poised to strengthen local capital markets and cultivate a culture of financial literacy and savings.

Investment Process

Residents can initiate the process by verifying eligibility with their banks, grasping Sukuk formats and associated risks, and investing via authorized digital platforms. They can effortlessly monitor returns and investment durations through bank portals, ensuring both transparency and ease of use.

The Retail Sukuk marks a pivotal development in the UAE's financial landscape, offering an accessible, secure, and ethical investment platform for both citizens and residents to build their savings while contributing to the nation’s economic progression.