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Emirates Islamic becomes first Islamic bank in region to introduce Fractional Sukuk for investors

Emirates Islamic becomes first Islamic bank in region to introduce Fractional Sukuk for investors
29 Apr 2024 15:21


Emirates Islamic launched an innovative new product catering to investors called Fractional Sukuk.

The exclusive offering grants customers access to international Sukuk markets with a minimum investment as low as $25,000.

The international Sukuk market typically requires a minimum investment of $200,000, posing a challenge for retail investors seeking exposure to Sukuk markets.

Notably, investors interested in accessing the Sukuk markets with smaller investment amounts will benefit from Shariah-compliant Fractional Sukuk, as this will enable them to diversify their investment portfolio and create an alternative income source.

They also have the freedom to build customised Sukuk portfolios tailored to their investment objectives with Fractional Sukuk based on their risk appetite, desired yields, credit ratings, and other criteria.

Furthermore, Fractional Sukuk investors have the flexibility to liquidate their investments by selling their holdings through Emirates Islamic, ensuring access to funds as needed.

This development makes Emirates Islamic the first Islamic bank in the region to introduce this investment class, providing investors with numerous benefits.

These include diversification opportunities, which allows them to distribute risk across different Sukuk issuers, sectors, and maturity periods, thereby improving the stability and resilience of their investment portfolios.

Acting Head of Retail Banking and Wealth Management at Emirates Islamic, Mohamed Al Hadi, said: “We are proud to be the first Islamic bank in the region to introduce an innovative offering such as Fractional Sukuk, further cementing our position as a forward-thinking financial institution with a commitment to offering our customers with best in class, innovative Shariah compliant products and services. Our Fractional Sukuk offering aligns with this vision.”

Head of Treasury and Markets at Emirates Islamic, Ebrahim Qayed, commented, “The Fractional Sukuk offering not only allows investors to enjoy the benefits of Sukuk ownership while managing risk, but also supports their investment goals and promotes overall financial empowerment. As a pioneering Shariah-compliant bank, we are glad to provide investors access to Regular income markets at a lower investment threshold and unlock new financial opportunities for them.”

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