The United Arab Emirates Ministry of Finance announced plans to issue two additional sukuk or conventional bonds later this year, following robust investor interest in its inaugural Sovereign Retail T-Sukuk Programme. The initial offering, launched this week, exceeded expectations with strong demand leading to an increase in issuance size from the planned 50 million dirhams to 100 million dirhams.
Mukesh Sodani, financial advisor to the Ministry, indicated that the size of the forthcoming issuances would be at least 50 million dirhams but noted that final details are yet to be decided. He also confirmed that the new sukuk issues could be listed on both Nasdaq Dubai and Abu Dhabi Securities Exchange.
The maiden offering featured a two-year tenor and yielded a profit rate of 4.30% per annum, with returns distributed semiannually. It was made available for trading on the secondary market through authorised brokers, supported by market makers and liquidity providers to maintain efficient price discovery and liquidity.
Investor response to the initial sukuk was notably broad and diverse. Subscription requests totaled approximately 445 million dirhams, nearly nine times the original target, signaling high demand across the UAE’s investor base. Retail investors subscribing amounts up to 10,000 dirhams constituted the largest group, representing 76% of subscribers. UAE nationals dominated the subscriber profile with 72% participation, while younger investors under 25 and women together accounted for 45% of the total.
Officials highlighted that the strong reception reflects increased financial literacy and interest in government-backed investment products among the public. Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, emphasized the programme’s role in expanding financial inclusion by offering safe and accessible investment opportunities to a wide segment of society.
Younis Haji AlKhoori, Undersecretary of the Ministry of Finance, explained that the initiative was developed in coordination with the Central Bank of the UAE and other financial sector partners to align national sovereign financing needs with individual investors’ long-term savings goals. He noted that the programme also supports the UAE’s Year of Family 2026 initiative by promoting financial resilience and planning within households.
Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market, added that the programme reduces barriers for retail investors to access fixed-income government securities, traditionally seen as less accessible, by making them available in a regulated and transparent marketplace.
The Ministry of Finance’s move to expand the Sovereign Retail T-Sukuk Programme appears poised to further stimulate retail participation in government bond markets, leveraging its initial success to support broader economic and social objectives.