The UAE Ministry of Finance has opened a second tranche of the Sovereign Retail T-Sukuk — this time with a five-year tenor. The minimum subscription remains AED 1,000, the instrument is Sharia-compliant and fully backed by the UAE Government. The profit rate is announced on 22 September 2026, and subscriptions run through seven receiving banks and the DFM digital platforms.
What the MoF is launching
On 17 September 2026, H.E. Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, announced the second issuance under the Sovereign Retail T-Sukuk Programme — the retail leg of the UAE's sovereign Islamic securities framework. Unlike the debut two-year tranche, this issuance carries a five-year tenor. According to the Ministry of Finance press release, the minimum subscription stays at AED 1,000, the paper is denominated in AED, fully Sharia-compliant and "fully backed by the UAE Government".
The Sovereign Retail T-Sukuk Programme is designed for individuals — both UAE nationals and residents. That sets it apart from classic UAE sovereign sukuk, which had historically been targeted at institutional investors. The strategic aim is broader retail participation in sovereign instruments and reinforcement of the UAE's position as a global Islamic finance hub.
Terms of the second issuance
As of the announcement, the publicly confirmed parameters are:
- Tenor: 5 years.
- Minimum subscription: AED 1,000 (the first tranche was also AED 1,000; the threshold has not been raised).
- Currency: UAE dirham (AED).
- Structure: Sharia-compliant sukuk at a fixed profit rate, fully backed by the UAE Government.
- Profit rate: announced on 22 September 2026. For reference, the debut two-year tranche paid 4.30% per annum in semi-annual instalments.
- Post-allocation listing: Nasdaq Dubai — a secondary market is available until maturity.
How to buy: banks and channels
Subscriptions are organised across several parallel channels. The main ones are:
- The eIPO platform of the Dubai Financial Market.
- The iVestor app.
- The DFM mobile app.
- The digital channels (mobile banking and online banking) of participating banks.
The lead receiving bank is Emirates NBD. Six more banks are wired in: Emirates Islamic, Abu Dhabi Islamic Bank (ADIB), Ajman Bank, Mashreq, Abu Dhabi Commercial Bank (ADCB) and First Abu Dhabi Bank (FAB). The distribution net covers almost every major retail bank in the country, Islamic banks included — a logical fit for a Sharia-compliant instrument.
Practically, an investor needs three things: a UAE bank account, a National Investor Number (NIN) on Dubai Financial Market / Nasdaq Dubai, and a verified KYC record with the chosen channel. If a UAE corporate or personal bank account is already in place, the remaining hurdles are the NIN and channel KYC — usually a matter of hours to a couple of days.
What the first tranche revealed — and why it matters for the second
According to Ministry of Finance figures, the debut two-year T-Sukuk, placed in June and listed on Nasdaq Dubai on 2 July 2026, produced the following metrics:
- Orders: AED 445m against a AED 50m target — roughly nine-fold oversubscription.
- Profit rate: 4.30% p.a., paid semi-annually.
- Demand mix: 72% of subscriptions came from UAE nationals, 76% of orders were AED 10,000 or less, and 45% of investors were young savers and women.
Al Hussaini's remark, per the MoF communication: "The Sovereign Retail T-Sukuk Programme represents a strategic step forward in empowering all segments of society."
The read-through is straightforward. The first issuance confirmed that the market will absorb small-ticket sovereign Sharia-compliant paper. The Government responded by extending the duration of the second tranche. For investors, that means the option to lock a fixed profit rate over five years instead of two — the longer the tenor, the more sensitive the position becomes to rate moves, and the more the entry point matters.
What it means for the expat investor
In practice, T-Sukuk covers several objectives at once.
An AED-denominated portfolio anchor. The instrument is government-backed, denominated in dirhams and not tied to any single bank's balance sheet. That makes it a natural anchor for the portion of savings an investor wants to keep in local currency — for UAE-linked goals such as rent, tuition or a property purchase.
An alternative to a term deposit. Unlike a term deposit, T-Sukuk is listed on Nasdaq Dubai — a position can be sold before maturity. Secondary-market pricing will follow benchmark rates and liquidity, so exit above or below par is possible depending on conditions.
Sharia-compliant income. For investors who care about the structure of returns (share of underlying asset return rather than an interest coupon), T-Sukuk clears that requirement — the paper has been signed off accordingly.
The key next data point is the profit rate announced on 22 September 2026 and the opening of the subscription window. Both will reveal how closely the terms match current AED rate levels and what demand profile a five-year duration attracts. Read against the broader UAE 2026 outlook — non-oil sector growth, stable fiscal metrics — the MoF's move toward a regular retail programme reads as a long-term line rather than a one-off.
