Ministry of Finance announces second issuance under Sovereign Retail T-Sukuk Programme with five-year tenor

Following the exceptional success and strong investor demand for the inaugural issuance under the Sovereign Retail T-Sukuk Programme, the Ministry of Finance has announced the launch of a second issuance with a five-year tenor.

The new issuance aims to broaden participation by UAE nationals and residents in sovereign investment instruments while reinforcing the UAE’s position as a global financial centre and a leading destination for Islamic finance.

The issuance reflects the Ministry of Finance’s comprehensive financial vision to advance financial inclusion and foster a culture of long-term saving and investment, in line with the objectives of the UAE’s Year of Family 2026.

The programme offers a highly secure, Shariah-compliant sovereign investment instrument that is fully backed by the UAE Government, with a minimum subscription of just AED1,000, enabling different segments of society to access sovereign investment opportunities.

In collaboration with Dubai Financial Market (DFM), Nasdaq Dubai and the approved receiving banks, the Ministry is also seeking to deliver a fully integrated and seamless digital subscription experience through digital channels.

Following the completion of allocation and settlement, the sukuk will be listed and made available for secondary market trading on Nasdaq Dubai.

Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, said, “The Sovereign Retail T-Sukuk Programme represents an advanced strategic step towards empowering all segments of society, including UAE nationals and residents, by providing them with direct access to Shariah-compliant sovereign investment instruments backed by the UAE Government.

“The programme goes beyond being a government financial instrument. It serves as a key pillar in supporting long-term financial planning and fostering a culture of saving and secure investment, in direct alignment with the objectives of the Year of Family 2026 to build a more sustainable financial future for individuals and families across the UAE.”

He added, “With the launch of this second issuance, offering a five-year tenor and an accessible minimum investment threshold, the Ministry of Finance reaffirms its commitment to advancing financial innovation, developing domestic capital markets and expanding the investor base for UAE dirham-denominated government debt instruments.

“The exceptional demand for the inaugural offering demonstrated strong confidence in the UAE’s sovereign instruments. We will continue working in close coordination with our financial partners, receiving banks and financial markets to provide a seamless and transparent digital investment experience that ensures ease of access and liquidity for investors, while strengthening the foundations of the national financial ecosystem and supporting its leadership in developing innovative and sustainable financing solutions.”

To further enhance accessibility and simplify the subscription process for retail investors, the approved subscription channels include Dubai Financial Market’s eIPO platform, the iVestor app, the DFM app, and the digital channels of the approved receiving banks.

Emirates NBD will serve as the lead receiving bank, with Emirates Islamic, Abu Dhabi Islamic Bank, Ajman Bank, Mashreq, Abu Dhabi Commercial Bank and First Abu Dhabi Bank acting as participating receiving banks.

Record results

The inaugural issuance attracted subscription orders worth AED445 million, nearly nine times the initial target issuance size of AED50 million. This strong demand prompted the Ministry to increase the issuance size to AED100 million.

The inaugural issuance reached a wide and diverse cross-section of investors. 76% of the demand was for AED10,000 or less, while UAE nationals made up 72% of the total investor base.

The results also showed strong participation by young investors under the age of 25 and by women. Together, the two groups accounted for 45% of total subscribers, reflecting the programme’s role in broadening financial inclusion.

The inaugural issuance had a two-year tenor and offered an annual profit rate of 4.30%, with returns distributed every six months.

It successfully completed all allocation and settlement stages, followed by the official listing of the sukuk and the commencement of secondary market trading on Nasdaq Dubai on 2nd July 2026. The profit rate for the second issuance will be announced on 22nd September 2026.