Emirates Islamic First in Region to Offer Fractional Sukuk to Investors

Emirates Islamic has distinguished itself as the pioneering Islamic bank in the region to offer Fractional Sukuk to investors, heralding a new era in the accessibility of the international Sukuk markets. As of April 29, 2024, this Dubai-based institution has dramatically lowered the investment entry point to a mere USD 25,000.

Traditionally, the global Sukuk market has been largely inaccessible, with starting investments often reaching USD 200,000, thereby restricting participation to high-net-worth individuals or institutional investors. Emirates Islamic’s innovative Fractional Sukuk initiative transforms this landscape, enabling retail investors to partake in Shariah-compliant investments without substantial upfront capital.

Adhering stringently to Islamic finance principles, the Fractional Sukuk ensures that all investments comply with Shariah law. It empowers investors to tailor their portfolios to match their financial objectives and risk preferences, considering key factors such as yield expectations and creditworthiness.

Furthermore, this investment model offers enhanced liquidity, permitting investors to liquidate their positions through Emirates Islamic as needed, thereby facilitating superior fund accessibility. This feature is particularly attractive to those requiring flexible financial liquidity management.

As the first Islamic bank in the region to introduce such a service, Emirates Islamic reaffirms its leadership in delivering innovative, client-oriented, and Shariah-compliant financial solutions. Mohamed Al Hadi, Acting Head of Retail Banking and Wealth Management, stated, “The introduction of Fractional Sukuk underlines our commitment to innovation and leadership within the Islamic banking sector, and perfectly aligns with our aim to offer premier, compliant financial solutions to our clientele.”

Brahim Qayed, Head of Treasury and Markets, further highlighted the benefits: “Our Fractional Sukuk offering not only lowers the entry barrier into regular income markets but also empowers investors to achieve their broader financial objectives.”

This strategic launch by Emirates Islamic to introduce Fractional Sukuk is poised to enhance the appeal of Sukuk investments, providing diversified options that distribute risk across various issuers, sectors, and maturity periods, thereby enhancing the stability and resilience of investment portfolios.

In conclusion, Emirates Islamic’s introduction of Fractional Sukuk marks a transformative step in the realm of Islamic finance, delivering a practical, inclusive, and innovative investment solution that broadens the financial horizons of a more diverse investor base, while remaining dedicated to the principles of Shariah.