UAE Ministry of Finance Expands Retail Sukuk Access with Emirates NBD Partnership

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UAE Ministry of Finance Launches Retail Sukuk with Emirates NBD as Second Partner Bank – AED 4,000 Minimum Investment Expands Financial Inclusion

Emirates NBD becomes second bank partner in UAE's Retail Sukuk Initiative, following ADIB's November 2025 agreement.
UAE nationals and residents can invest in government-backed Islamic Treasury Sukuk from AED 4,000 through mobile banking apps.
The initiative reduces minimum investment thresholds by 99.5% compared to institutional requirements of USD 200,000–250,000.
Retail Sukuk offer yields of approximately 3.66%, backed by the UAE federal government's Aa2/AA credit rating.
Three banks now participate: ADIB, Emirates NBD, and Emirates Islamic Bank, with further partners expected.
The programme supports the UAE's National Strategy for Islamic Finance targeting AED 660 billion in sukuk issuances by 2031.

The UAE Ministry of Finance has signed a partnership agreement with Emirates NBD to distribute government-backed Islamic Treasury Sukuk (T-Sukuk) to retail investors through the bank's ENBD X mobile application. The agreement, announced on 19 November 2025, makes Emirates NBD the second banking partner in the Retail Sukuk Initiative, following Abu Dhabi Islamic Bank's pioneering agreement earlier that month.

Individual investors can now purchase T-Sukuk from as little as AED 4,000 (approximately USD 1,089), a dramatic reduction from the USD 200,000–250,000 minimum typically required for institutional participation. Emirates Islamic Bank joined the initiative on 7 December 2025, bringing the total number of participating banks to three.

Strategic Framework and Government Objectives

The Retail Sukuk Initiative was formally launched in October 2025 as part of the UAE's financial inclusion strategy. Younis Haji AlKhoori, Undersecretary of the Ministry of Finance, stated that the programme represents "an advanced phase in widening the pool of national institutions supporting the Ministry's national programmes" and aims to "embed a culture of saving and sustainable investment among citizens and residents."

The initiative directly supports the UAE Cabinet's National Strategy for Islamic Finance and the Halal Industry (2025–2031), which targets expansion of Islamic banking assets to AED 2.56 trillion and sukuk issuances to AED 660 billion by 2031. Global Islamic finance markets are projected to reach USD 10.54 trillion by 2031, with the GCC region accounting for approximately 62% of the global Islamic finance base.

Digital Platform and Investment Structure

Emirates NBD integrates T-Sukuk subscriptions directly into its ENBD X mobile banking application, offering a fully digital investment experience. The platform enables UAE nationals and residents with an Emirates ID or UAE PASS to complete registration, KYC requirements, and risk profiling entirely online without branch visits.

Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, noted that by "providing individual investors with access to UAE T-Bonds and T-Sukuk via the ENBD X mobile application," the bank contributes to "deepening the domestic debt market and making it more dynamic and resilient." Investors can access both primary market allocations and secondary market transactions through the platform.

Sukuk Characteristics and Returns

T-Sukuk issued by the Ministry of Finance are structured as Shariah-compliant instruments based on Murabaha (cost-plus financing) and Ijara (leasing) principles. The current asset pool comprises 54% Ijara assets and 46% Murabaha receivables, all backed by government-guaranteed Treasury obligations. Emirates NBD platforms indicate retail sukuk yields of approximately 3.66%.

Recent Treasury Sukuk auctions demonstrate strong institutional demand. The November 2025 auction attracted AED 5.48 billion in bids, representing five times oversubscription. All T-Sukuk are listed on Nasdaq Dubai, providing secondary market liquidity for retail investors seeking to trade positions before maturity.

Risk Considerations for Retail Investors

Partner banks provide explicit risk documentation to retail investors. Capital protection is guaranteed only at maturity, with sukuk sold prior to maturity potentially realising losses based on prevailing market conditions and interest rate movements. Secondary market liquidity may be limited, and sukuk may contain embedded call options allowing early redemption by the issuer.

The Central Bank of the UAE serves as issuing and payment agent for all T-Sukuk transactions, with the Capital Market Authority (effective 1 January 2026 under Federal Decree-Law No. 32 of 2025) providing supervisory oversight of investor protection mechanisms.

Market Context and Future Expansion

Global sukuk issuance reached USD 264.8 billion in 2025, representing 12.7% year-on-year growth. The UAE accounted for USD 22.1 billion of this total. S&P Global projects global sukuk issuance to reach USD 270–280 billion in 2026, with the UAE and Saudi Arabia identified as leading contributors to growth.

The Ministry of Finance has committed to establishing partnerships with additional national banks in subsequent phases. The eight primary dealers authorised for Treasury Sukuk auctions—including First Abu Dhabi Bank, Dubai Islamic Bank, HSBC, Mashreq, and Standard Chartered—are positioned as potential future retail partners. Success metrics for the initiative will be measurable by 2026–2027, including cumulative retail participant numbers and secondary market trading volumes.