The UAE’s Ministry of Finance plans to launch two more sukuk or bond issuances this year following a strong response to its inaugural Sovereign Retail T-Sukuk Programme, a senior official said on Thursday.
“There could be two more issuances this year – either sukuk or conventional bond. We have not decided yet the size, but it will be Dh50 million or higher. We will decide later. In addition to Nasdaq Dubai, we are also open to listing them on Abu Dhabi Securities Exchange also,” said Mukesh Sodani, financial advisor to Ministry of Finance.
“I’m sure the next issuances will also get a similar strong response from UAE citizens and expatriate community,” he said, after the listing of inaugural Sovereign Retail T-Sukuk was listed on Nasdaq Dubai on Thursday.
The inaugural offering recorded exceptional investor demand, exceeding official expectations, with subscription requests reaching Dh445 million, achieving an oversubscription of nearly 9 times the target issuance size of Dh50 million. In response to the strong investor demand, the Ministry increased the issuance size to Dh100 million.
The programme also attracted a broad and diverse base of retail investors, with retail investors subscribing up to Dh10,000 representing the largest segment of subscribers, accounting for 76 per cent of the total subscriber base. UAE nationals represented the largest share of subscribers, accounting for 72 per cent of the total subscriber base.
The inaugural issuance had a two-year tenor and offered a profit rate of 4.30 per cent per annum, with returns distributed every six months. The sukuk are now available for trading on the secondary market through authorised exchange brokers and are supported by dedicated market makers and liquidity providers to ensure efficient price discovery, enhance market liquidity and facilitate seamless trading.
The data also showed strong participation from young investors under the age of 25 and women, who together accounted for 45 per cent of the total subscriber base.
“The exceptional investor demand for the inaugural offering, which exceeded expectations and achieved record levels of oversubscription, reflects the growing financial and investment awareness among members of society. It also demonstrates the programme’s success in broadening participation in government investment instruments and advancing financial inclusion by providing secure and trusted investment opportunities for all segments of society,” said Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs.
Younis Haji AlKhoori, Undersecretary of the Ministry of Finance, said they worked closely with the Central Bank of the UAE and its partners across the financial markets and banking sector to design this programme as a strategic bridge between the country’s sovereign financing objectives and the long-term saving aspirations of individual investors.
“The launch of this landmark programme also supports the objectives of the UAE’s Year of Family 2026 by providing financial solutions that strengthen household financial resilience while promoting a culture of sound financial planning among family members,” he added.
“By lowering the barrier to entry for government-backed fixed-income investments and bringing them to a transparent, regulated marketplace, this programme opens the door for more individuals to participate in an asset class that has traditionally been beyond the reach of many retail investors,” said Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM).
