The UAE's Finance Ministry launches "Individual Sukuk" initiative enabling private investors access treasury sukuks aligned with Sharia law via participating banks' digital platforms.

The Ministry of Finance has announced the launch of an initiative known as "Individual Sukuk," allowing private investors to engage in government treasury sukuk investments that align with Islamic law. These can be accessed through digital platforms provided by participating banks within the country. This strategic step aims to bolster financial inclusion and broaden the investor base in governmental financial instruments, enabling both citizens and residents to invest conveniently and safely according to Sharia principles, starting with amounts as low as 4,000 dirhams.

This initiative aligns with the directives of wise leadership to empower society economically, complementing the goals of "Year of Community 2025". It underscores values of unity, enhances individual and family welfare, and allows community members to contribute towards a more sustainable future.

His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance stated, “The 'Individual Sukuk' initiative embodies the UAE’s vision and its leadership's guidance in empowering society and enhancing participation in national development through financial policies prioritizing human welfare. Launched under the banner of Year of Community 2025, it opens new horizons for citizens and residents alike to partake in building the future through safe, government-backed investment tools.”

He added: “Through this initiative, the Ministry aims to make investing in government sukuk a simplified digital experience accessible to all community segments. Previously limited to institutional investors, these high-quality financial tools are now available for everyone. It marks a strategic move toward solidifying financial inclusion and promoting long-term savings culture while ensuring sustained state resources supporting developmental objectives across various sectors.”

An Immediate Opportunity

In a message on platform X yesterday, His Highness Sheikh Maktoum expressed: “The Ministry has launched 'Individual Sukuk,' empowering citizens and residents to invest in government treasury sukuks while expanding investor bases for governmental financial instruments. This facilitates easy and secure individual investments."

He continued: “This initiative exemplifies our leadership's vision for individual empowerment by enhancing savings culture and developing governmental investment tools that amplify personal contributions towards economic growth.”

A Transformative Shift

The Minister of State for Financial Affairs, Mohamed Bin Hadi Al Hussaini remarked: "'Individual Sukuk’ represents a transformative shift in developing government investment tools fostering personal participation in economic growth while providing direct opportunities for individuals contributing to national development efforts." He explained further that this reflects the ministry’s vision for creating an innovative financial environment offering safe investment solutions benefiting society at large.

Aim at Raising Awareness

The Ministry clarified that this endeavor intends not only to raise awareness about investing opportunities among citizens but also encourages broader participation by highlighting how effortlessly one can register whilst maintaining full compliance with Islamic standards. Moreover, it incentivizes long-term investments into Emirati treasury sukuks as reliable means for wealth preservation.

The new availability signifies a noteworthy accomplishment - making traditionally institution-only compliant government sukuks universally accessible within UAE borders; thereby extending comprehensive access into state-endorsed Islamic finance mechanisms.

Sukuks intended for individuals are presented in dirhams linked directly with market-circulated Treasury issuances previously allocated exclusively towards institutional investors-enabling individual engagement in securing high-grade assets once confined solely within major portfolios. The rollout will unfold via national banks with first announcements expected November 3rd025.