UAE's second retail treasury sukuk begins trading on Nasdaq Dubai

Dubai: The UAE Federal Government's second retail treasury sukuk began trading on Nasdaq Dubai on October 1, offering small investors a new way to purchase government-backed Islamic securities for as little as Dh1,000. The UAE Gov Retail T-Sukuk 5.06% 30Sep2031 debuted at 10am Dubai time under the symbol UAESUKUK0931. Issued by the UAE Federal Government Sukuk Programme Ltd, the issuance size is Dh50 million.

Investors receive a fixed coupon of 5.06 percent, paid semi-annually on 30 March and 30 September. With a minimum investment of Dh1,000, each six-month distribution amounts to roughly Dh25.30, totaling Dh253 over the five-year term, with principal returned at maturity. The low entry point is the primary appeal, as this retail sukuk targets individual savers instead of institutions.

Listed securities permit investors to sell before maturity on the exchange. However, the sale value may differ from the original Dh1,000 due to market yields. With a limited issue size of Dh50 million, trading volumes might be restricted, impacting ease of buying or selling at desired prices. The issuance of this second retail sukuk indicates ongoing efforts to expand access to government debt for everyday investors and strengthen the local Islamic finance market.

Retail-focused issues like this provide residents with a regulated alternative to bank deposits, though returns are not guaranteed if sold early. UAE residents may now apply for the second 5-year retail T-Sukuk, and the federal government's yearly profit rate stands at 5.06 percent.