UAE Ministry of Finance Opens Subscription for First Retail T-Sukuk

The UAE Ministry of Finance (MoF) has officially opened the subscription period for the first tranche of its sovereign Dirham-denominated Islamic Treasury Sukuk (T-Sukuk) specifically designed for retail investors. The programme allows individual investors to purchase government-backed Sharia-compliant debt securities for the first time. Subscription Details and Pricing The inaugural auction for the retail tranche features a three-year tenor, maturing in 2027. The Ministry confirmed a fixed profit rate of 4.45% per annum, with payments distributed semi-annually. The minimum subscription amount is set at AED 1,000, ensuring accessibility for a broad segment of the UAE population, including both nationals and residents. Subscription for the first tranche remains open from May 20 to May 27, 2024. Interested individuals can participate through various receiving banks, including Abu Dhabi Islamic Bank (ADIB), Emirates NBD, and Dubai Islamic Bank. The securities will be listed and traded on Nasdaq Dubai. Market Impact and Objectives This initiative follows the successful implementation of the UAE’s institutional T-Sukuk and T-Bond programmes, which have raised billions in the local…