UAE Retail T-Sukuk debut draws AED 445 million in demand, 9 times oversubscribed
Strong investor appetite prompts Ministry of Finance to double inaugural issuance to AED100 million
Abu Dhabi: The Ministry of Finance celebrated the successful launch and official listing of the UAE’s first Sovereign Retail T-Sukuk Programme, with Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, ringing the opening bell at Nasdaq Dubai.
The listing marks a major milestone in the UAE’s efforts to broaden participation in its financial markets and provide innovative government-backed investment products that promote long-term saving and investment.
The inaugural offering attracted exceptional investor demand, with subscriptions reaching AED 445 million — almost nine times the original target issuance of AED 50 million. In response to strong interest, the Ministry increased the issuance size to AED 100 million.
The programme attracted a diverse retail investor base. Investors subscribing up to AED 10,000 represented 76% of all subscribers, while UAE nationals accounted for 72% of the subscriber base. Young investors under the age of 25 and women collectively represented 45% of total subscribers, highlighting the programme’s contribution to financial inclusion.
Held at Nasdaq Dubai’s headquarters in the Dubai International Financial Centre (DIFC), the bell-ringing ceremony brought together senior financial officials, banking partners and media representatives to mark the start of secondary market trading for the retail-focused sukuk programme.
Mohamed bin Hadi Al Hussaini said: “The UAE continues to advance a resilient and inclusive economic model built on a sophisticated financial and legislative infrastructure aligned with the highest international standards. The listing of the country’s inaugural Sovereign Retail T-Sukuk Programme reflects the Ministry’s strategic vision to strengthen domestic capital markets and diversify sovereign funding sources, while providing secure investment solutions that support long-term financial stability.”
He added that the strong demand demonstrates growing financial awareness among investors and reflects confidence in government-backed investment instruments.
Supporting financial inclusion
Following the ceremony, the Ministry of Finance hosted a media briefing led by Younis Haji Al Khoori, Undersecretary of the Ministry of Finance.
He described the listing as an important step in supporting a more sustainable economy and creating opportunities for individuals to participate in the UAE’s growth story.
“The Ministry of Finance has worked closely with the Central Bank of the UAE and our partners across the financial sector to design this programme as a bridge between sovereign financing objectives and the long-term saving goals of individual investors,” he said.
Al Khoori added that the initiative also supports the objectives of the Year of Family 2026 by strengthening household financial resilience and encouraging sound financial planning.
Boost for capital markets
Hamed Ali, Chief Executive Officer of Nasdaq Dubai and Dubai Financial Market (DFM), said the programme lowers barriers to entry for government-backed fixed-income investments and enables broader participation in an asset class that was previously inaccessible to many retail investors.
The programme was developed through collaboration between the Ministry of Finance, the Central Bank of the UAE, Nasdaq Dubai, Dubai Financial Market and several banking partners, including Emirates NBD, Emirates Islamic Bank, Abu Dhabi Islamic Bank, Mashreq Bank and Ajman Bank.
Key features
The inaugural issuance:
- Was initially launched at AED50 million before being increased to AED100 million
- Had a minimum investment threshold of AED1,000
- Offers a 4.30% annual profit rate
- Features a two-year tenor
- Provides returns every six months
- Is fully Shariah-compliant
- Is now available for secondary-market trading through authorised brokers
Dedicated market makers and liquidity providers have also been appointed to support trading efficiency and price discovery.
The listing expands access to government-backed investment opportunities through a transparent and regulated marketplace, while supporting the continued development of the UAE’s capital markets and promoting a culture of long-term saving and investment.
Nasdaq Dubai currently hosts more than US$98.6 billion in outstanding sukuk listings and over US$141 billion in outstanding debt securities, reinforcing Dubai’s position as a global hub for Islamic finance.