Sukuk and Bonds in the UAE
Sukuk and bonds: the difference
| Feature | Sukuk | Bond |
|---|---|---|
| What you hold | A share in a real asset or project | A loan to the issuer |
| What you earn | A share of the income the asset generates | Interest |
| Sharia | Always backed by a fatwa confirming compliance | Not Sharia-compliant |
Source: DFM: FAQs on sukuk1
Sukuk holders rank ahead of shareholders, and profit is commonly paid twice a year, with the capital returned at maturity.1
Federal Treasury Bonds and Sukuk
| Feature | Detail |
|---|---|
| Currency | UAE dirham |
| Maturities | 2 to 5 years |
| Listing | Nasdaq Dubai |
| Issuing and payment agent | Central Bank of the UAE |
| Auctions | About AED 1.1 billion a month |
| July 2026 auction | AED 4.83 billion of bids, 4.4 times the amount; yields of 4.49% and 4.48% |
| Outstanding | AED 31,250 million on 14 October 2026, projected AED 33,450 million by the end of 2026 |
Source: Ministry of Finance: Treasury sukuk and bonds auction, January 2026; Ministry of Finance: Issuance programme; Ministry of Finance: Treasury sukuk and bonds auction, July 20262,4,3
The auctions are open to the Ministry of Finance's eight primary dealers, which are banks.5
Government sukuk for individuals
| Feature | Retail T-Sukuk | Fractionalised T-Sukuk |
|---|---|---|
| What you buy | New issues at par | Shares of sukuk already listed |
| Minimum | AED 1,000 | AED 4,000 |
| How | DFM and receiving banks' digital channels | Participating banks' apps |
| Who can buy | UAE nationals and residents with an Emirates ID and a DFM investor number | UAE nationals and residents with an Emirates ID |
Source: Ministry of Finance: Retail T-Sukuk6
| Retail T-Sukuk issue | Term | Profit rate | Size |
|---|---|---|---|
| June 2026 | 2 years | 4.30% a year | AED 50 million planned, raised to AED 100 million |
| September 2026 | 5 years | 5.06% a year | AED 50 million target |
Source: Ministry of Finance: Pricing of the inaugural Retail T-Sukuk; Ministry of Finance: Listing of the inaugural Retail T-Sukuk; Ministry of Finance: The Pulse of Finance, September 20267,8,9
Non-residents cannot buy Retail T-Sukuk. They can get a DFM investor number, open to any nationality, and buy listed sukuk and bonds on Nasdaq Dubai through a broker.6,10
Frequently Asked Questions
Can residents buy UAE government sukuk?
Yes. UAE nationals and residents with an Emirates ID can buy Retail T-Sukuk from AED 1,000 with a DFM investor number, or Fractionalised T-Sukuk from AED 4,000 through participating banks.
Sources
- DFM: FAQs on sukuk
- Ministry of Finance: Treasury sukuk and bonds auction, January 2026
- Ministry of Finance: Treasury sukuk and bonds auction, July 2026
- Ministry of Finance: Issuance programme
- Ministry of Finance: Public debt
- Ministry of Finance: Retail T-Sukuk
- Ministry of Finance: Pricing of the inaugural Retail T-Sukuk
- Ministry of Finance: Listing of the inaugural Retail T-Sukuk
- Ministry of Finance: The Pulse of Finance, September 2026
- DFM: Investor number FAQ
Figures checked 21 October 2026. Prepared by Invest-Emirates.ae for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.