The UAE Federal Government’s second retail Treasury Sukuk began trading on Nasdaq Dubai on October 1, giving individual investors access to government-backed Islamic securities from AED 1,000.
The UAE Gov Retail T-Sukuk 5.06% 30Sep2031 was admitted to trading at 10 am Dubai time under the symbol UAESUKUK0931. The issue was launched by the UAE Federal Government Sukuk Programme Ltd, with an issue size of AED 50 million.
The retail Sukuk carries a fixed coupon of 5.06% and will mature on September 30, 2031. Investors will receive distributions twice a year on March 30 and September 30.
An investor holding the minimum AED 1,000 denomination would receive about AED 25.30 every six months. Over the five-year term, the total distributions would be around AED 253, with the principal due at maturity, based on the published terms.
The AED 1,000 minimum denomination makes the instrument accessible to individual investors. The Sukuk is backed by the UAE Federal Government and is structured as an Islamic investment security.
The listing also gives investors an option to sell their holdings before maturity. The market price can move with changes in market yields. This means an investor selling before 2031 could receive more or less than the original AED 1,000 value.
The latest listing is the UAE Federal Government’s second retail Sukuk. It forms part of efforts to broaden access to government securities for individual investors and support the domestic Islamic finance market. The AED 50 million issue size could also affect trading liquidity. Investors may not always find buyers at their preferred price when attempting to sell before maturity.
The Sukuk is different from a bank deposit. While it offers a fixed coupon, its market value can fluctuate before maturity. Investors who hold the security until maturity are scheduled to receive the principal according to the published terms.
The Nasdaq Dubai listing gives retail investors another route to access UAE government securities through a regulated market. The minimum investment of AED 1,000 keeps the entry threshold relatively low for individual investors.
Also Read: What Does the UAE's AI Transformation Mean for International Investors?