UAE’s new 5.06% sukuk: How much could Dh1,000 and Dh10,000 earn?

The UAE has set the return on its second retail T‑Sukuk at 5.06% per annum for a five‑year term, with subscriptions opening on September 23 and closing on September 28. The Ministry of Finance is targeting Dh50 million from the issuance, which retains a minimum investment of Dh1,000 and pays profits semi‑annually. The sukuk will begin trading on Nasdaq Dubai on October 1 after allocation and settlement, creating a secondary market for holders who wish to sell before maturity.

"At the stated annual profit rate of 5.06 per cent, a Dh1,000 investment would generate Dh50.60 in profit over a full year," the issuance document notes, adding that profit payments are distributed every six months.

How much can retail investors earn?

The sukuk’s semi‑annual payment schedule makes it straightforward to estimate returns. Using the announced 5.06% yield:

• Dh1,000 investment: Dh50.60 per year, approximately Dh25.30 every six months.
• Dh10,000 investment: Dh506 per year, approximately Dh253 every six months; Dh2,530 total profit if held for the full five years.
• Dh50,000 investment: Dh2,530 per year, about Dh1,265 every six months; Dh12,650 total profit over five years.

These calculations assume the stated profit rate remains unchanged over the five‑year tenor and do not account for potential transaction, trading or other applicable charges. The offering is issued under the UAE’s Sovereign Retail T‑Sukuk Programme and is explicitly backed by the UAE Government. The programme was created to give individual investors access to sovereign instruments that have largely been held by institutional investors.

Subscription process, eligibility and distribution

Eligible UAE nationals and residents can subscribe using a Dubai Financial Market Investor Number (NIN) and a registered mobile number. Those without an NIN must obtain one before subscribing. Subscriptions are available via the DFM eIPO platform, the iVestor app, the DFM app and the digital channels of participating banks. Emirates NBD is the lead receiving bank, with Emirates Islamic, Abu Dhabi Islamic Bank, Ajman Bank, Mashreq, Abu Dhabi Commercial Bank and First Abu Dhabi Bank also acting as receiving banks.

Allocation is scheduled for September 29, followed by settlement and refunds of excess subscription amounts on September 30. The sukuk is due to begin trading on Nasdaq Dubai on October 1. The issuance carries the same minimum Dh1,000 subscription as the first retail T‑Sukuk launched earlier in the year, but differs in tenor and yield: the initial offering had a two‑year term and a 4.30% annual profit rate, while the second issue extends to five years and offers 5.06%.

Demand for the first offering significantly exceeded supply. Investors placed Dh445 million in orders against an original Dh50 million issuance, prompting a doubling of the offering size to Dh100 million. Smaller investors represented a large share of that demand, with around 76% of subscriptions worth Dh10,000 or less.

Outlook and secondary‑market considerations

While the five‑year maturity provides a clear path to principal return at maturity, investors who need liquidity can seek to sell on Nasdaq Dubai once trading begins. The sale price on the secondary market may be higher or lower than the original investment, meaning early sellers could realise gains or losses relative to principal. For those prepared to hold to maturity, the announced 5.06% rate and government backing offer a predictable stream of semi‑annual profit payments and a return of principal, subject to the issuance terms and any applicable fees.