Emirates Islamic becomes first Islamic bank in the region to introduce Fractional Sukuk for investors
Emirates Islamic, one of the leading Islamic financial institutions in the UAE, has launched Fractional Sukuk, an innovative new product catering to investors. The exclusive offering grants customers access to international Sukuk markets with a minimum investment as low as USD 25,000.
The international Sukuk market typically requires a minimum investment of USD 200,000, posing a challenge for retail investors seeking exposure to Sukuk markets. Investors interested in accessing the Sukuk markets with smaller investment amounts will benefit from Shariah-compliant Fractional Sukuk, as this will enable them to diversify their investment portfolio and create an alternative income source.
Investors have the freedom to build customised Sukuk portfolios tailored to their investment objectives with Fractional Sukuk based on their risk appetite, desired yields, credit ratings, and other criteria. Additionally, Fractional Sukuk investors have the flexibility to liquidate their investments by selling their holdings through Emirates Islamic, ensuring access to funds as needed.
Emirates Islamic is the first Islamic bank in the region to introduce this investment class, providing investors with numerous benefits, such as diversification opportunities, allowing them to distribute risk across different Sukuk issuers, sectors, and maturity periods, thereby improving the stability and resilience of their investment portfolios.
Mohamed Al Hadi, Acting Head of Retail Banking and Wealth Management, Emirates Islamic, said: “We are proud to be the first Islamic bank in the region to introduce an innovative offering such as Fractional Sukuk, further cementing our position as a forward-thinking financial institution with a commitment to offering our customers with best in class, innovative Shariah compliant products and services. Our Fractional Sukuk offering aligns with this vision.”
Ebrahim Qayed, Head of Treasury and Markets at Emirates Islamic, added, “The Fractional Sukuk offering not only allows investors to enjoy the benefits of Sukuk ownership while managing risk, but also supports their investment goals and promotes overall financial empowerment. As a pioneering Shariah-compliant bank, we are glad to provide investors access to Regular income markets at a lower investment threshold and unlock new financial opportunities for them.”
The international Sukuk market typically requires a minimum investment of USD 200,000, posing a challenge for retail investors seeking exposure to Sukuk markets. Investors interested in accessing the Sukuk markets with smaller investment amounts will benefit from Shariah-compliant Fractional Sukuk, as this will enable them to diversify their investment portfolio and create an alternative income source.
Investors have the freedom to build customised Sukuk portfolios tailored to their investment objectives with Fractional Sukuk based on their risk appetite, desired yields, credit ratings, and other criteria. Additionally, Fractional Sukuk investors have the flexibility to liquidate their investments by selling their holdings through Emirates Islamic, ensuring access to funds as needed.
Emirates Islamic is the first Islamic bank in the region to introduce this investment class, providing investors with numerous benefits, such as diversification opportunities, allowing them to distribute risk across different Sukuk issuers, sectors, and maturity periods, thereby improving the stability and resilience of their investment portfolios.
Mohamed Al Hadi, Acting Head of Retail Banking and Wealth Management, Emirates Islamic, said: “We are proud to be the first Islamic bank in the region to introduce an innovative offering such as Fractional Sukuk, further cementing our position as a forward-thinking financial institution with a commitment to offering our customers with best in class, innovative Shariah compliant products and services. Our Fractional Sukuk offering aligns with this vision.”
Ebrahim Qayed, Head of Treasury and Markets at Emirates Islamic, added, “The Fractional Sukuk offering not only allows investors to enjoy the benefits of Sukuk ownership while managing risk, but also supports their investment goals and promotes overall financial empowerment. As a pioneering Shariah-compliant bank, we are glad to provide investors access to Regular income markets at a lower investment threshold and unlock new financial opportunities for them.”
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