UAE treasury bonds and sukuk: how individuals can invest

Individuals in the UAE can invest in federal government sukuk in two ways set by the Ministry of Finance: Retail T-Sukuk, new issues from AED 1,000 bought through the DFM or receiving banks with a DFM investor number, and fractionalised T-Sukuk, slices of existing sukuk from AED 4,000 through participating banks. Treasury bond and sukuk auctions are for eight primary dealer banks.

Key takeaways

• The Ministry of Finance sells dirham T-Bonds and institutional T-Sukuk at scheduled auctions open only to eight primary dealer banks.
• Retail T-Sukuk let UAE nationals and residents with an Emirates ID and a DFM investor number subscribe from AED 1,000.
• Fractionalised T-Sukuk sell slices of existing sukuk from AED 4,000 through participating banks, with 0.25% buy and sell fees.
• The September 2026 retail offer was a 5-year sukuk with a profit rate of 5.06%.
• The Ministry says profit and principal are not subject to UAE income tax, as the UAE has no personal income tax.

On this page 9 sections

What UAE T-Bonds and T-Sukuk are

T-Bonds and T-Sukuk are debt in UAE dirhams issued by the federal government through the Ministry of Finance. T-Bonds are conventional bonds that pay interest. T-Sukuk are Shariah-compliant certificates that pay profit instead, under what the Ministry describes as an Ijarah and Murabaha structure.

The sukuk programme’s Information Memorandum describes T-Sukuk as public debt instruments under Decretal Federal Law No. 9 of 2018 regarding Public Debt. The Central Bank of the UAE (CBUAE) acts as registrar, auction agent and paying agent for the sukuk sold at auction, and Nasdaq Dubai Limited is registrar and paying agent for retail issues. The Ministry says the programme helps build a dirham yield curve: benchmark rates for borrowing in dirhams over different terms.

What a sukuk is

A sukuk is a certificate that gives its holder a share in assets or contracts, and the return comes from those rather than from interest on a loan. In the federal programme, a special purpose company acting as trustee issues the certificates and holds lease (Ijarah) and cost-plus sale (Murabaha) contracts with the government, whose payments under them fund the profit and the repayment. The Information Memorandum says the CBUAE’s Higher Shari’ah Authority approved the structure; whether it meets an individual’s own religious standards is outside this guide.

How the auctions work

The Ministry sells T-Bonds and T-Sukuk at auctions on dates it publishes in advance, and only primary dealer banks can bid. The Information Memorandum calls the sukuk sold this way Institutional T-Sukuk.

Banks that can bid at auctions

8 primary dealer banks

The UAE issues dirham-denominated T-Bonds and T-Sukuk through scheduled auctions; the Federal Debt Management Office has selected eight banks as primary dealers, which have the exclusive right to buy the securities at auction and distribute them to clients.

The Ministry’s Issuance Programme page carries the year’s calendar: each security by ISIN and maturity date, the amount planned for each auction and the outstanding debt. The securities still outstanding on the 2026 calendar mature between 2027 and 2033; some auctions launch a new security and others sell more of an existing one.

After each auction the Ministry publishes four figures for every security sold:

Ways for individuals to invest

Individuals have three routes: Retail T-Sukuk when they are issued, fractionalised T-Sukuk through a bank, and listed sukuk bought through a broker. The first two are Ministry of Finance schemes for UAE nationals and residents with an Emirates ID. The Ministry’s page compares them:

Retail T-Sukuk: new issues from AED 1,000

Retail T-Sukuk minimum

Minimum AED 1,000

Retail T-Sukuk let UAE nationals and UAE residents with a valid Emirates ID who hold a DFM National Investor Number subscribe directly to new federal treasury sukuk from AED 1,000, through the DFM e-subscription platform and the receiving banks' digital channels; each issue has a fixed profit rate, pays profit semi-annually, is issued at par and is listed and tradable after issuance.

Retail T-Sukuk are sold in a subscription window announced for each issue, and each issue’s final terms set its size, maturity and profit rate. The Information Memorandum says they are offered solely within the UAE, to individuals with a DFM investor number who hold UAE nationality or a valid Emirates ID. A DFM investor number (NIN) can be obtained through the DFM app, the iVestor app, the DFM Investor Affairs Desk or a licensed trading member of DFM or Nasdaq Dubai; see how to get a DFM investor number.

Fractionalised T-Sukuk: from AED 4,000

Fractionalised T-Sukuk minimum and fees

Minimum AED 4,000; 0.25% buy and sell fees

Fractionalised T-Sukuk let UAE citizens and residents with a valid Emirates ID buy fractional interests in existing listed federal treasury sukuk from AED 4,000 through participating banks' digital platforms, with maturities from under 1 year up to 5 years, semi-annual pro-rata profit, market-based pricing, a buy fee of 0.25%, a sell fee of 0.25% and no redemption fee at maturity.

Each fractional unit is a pro-rata share of a government sukuk already in issue, with the same structure and profit dates as the underlying certificate. The bank’s platform shows holdings, accrued profit and maturity dates, and buying and selling happen inside it at prices linked to the market. Eligibility and onboarding follow each participating bank’s terms.

The Ministry’s page gives the fees as percentages without naming the amount they apply to. Taken as a share of the amount traded, on a purchase of AED 10,000 the buy fee is AED 10,000 × 0.25% = AED 25. If the units are later sold for AED 10,000, the sell fee is another AED 25, so buying and selling cost AED 50 before any VAT on the fees. The amounts are illustrations.

Buying listed bonds and sukuk through a broker

The Information Memorandum says an application has been made for the programme’s sukuk to be admitted to trading on Nasdaq Dubai, and each issue’s final terms say whether it will be listed; the Ministry says Retail T-Sukuk are listed and tradable after issuance. In the market the price is set by buyers and sellers, so it can be above or below face value, and trades go through a licensed broker. Bonds and sukuk from other issuers trade the same way, with risks that depend on the issuer. US Treasury bonds are a separate market and are not covered here.

How to subscribe to Retail T-Sukuk

Subscribing takes a DFM investor number, an application during the subscription window and payment with the application. The Information Memorandum sets out the process:

1. Get a DFM investor number before the subscription window closes.
2. Watch for the subscription window. The Ministry publishes it on its Retail T-Sukuk page and the DFM e-subscription platform displays it. The government can shorten or extend a window; if the two differ, the Ministry’s page prevails.
3. Read the offer documents. Each issue’s final terms (size, issue date, maturity, profit dates) are read with the Information Memorandum; both are on the Retail T-Sukuk page.
4. Apply on the DFM e-subscription platform (the DFM app, the iVestor app or the DFM website’s investor portal) or through a receiving bank. Each issue’s Receiving Bank Particulars document, on the Ministry’s page, lists the banks and their channels.
5. Pay. Accepted payment methods depend on the channel, and some methods need funding before the window closes.
6. Receive the allocation. After the window closes, applicants are told their allocation through the DFM platform or their bank, and on the issue date the sukuk are credited to the securities account linked to their NIN.

Payment, allocation and refunds

Payment in full on application; unallocated amounts refunded within 5 business days

Under the Information Memorandum for the UAE Treasury Sukuk Programme, a Retail T-Sukuk Subscription Application must be paid in full when it is submitted, is irrevocable and cannot be withdrawn or amended once submitted, may be allocated less than applied for or nothing at the Government's sole discretion, and any amount not allocated is refunded within five business days of the allocation date to the account or channel it was paid from; allocated sukuk are credited on the issue date to the securities account linked to the applicant's DFM NIN.

Yields and profit rates

A Retail T-Sukuk pays a fixed profit rate set for each issue. Auction yields are a separate measure: dated results from auctions open only to primary dealers.

September 2026 Retail T-Sukuk

5 years; profit rate 5.06%

The Ministry of Finance's Retail T-Sukuk offer opened for subscription from 08:00 on 23 September 2026 to 14:00 on 28 September 2026, with a tenor of 5 years and a profit rate of 5.06%.

Three terms explain the published numbers:

• Profit rate: the fixed annual rate a sukuk pays on its face value, split into two payments a year.
• Clean price: the price per 100 of face value, leaving out profit built up since the last payment. A clean price of 97.67 means AED 97.67 for each AED 100.
• Yield: the annual return for a buyer at that price who holds to maturity. Paying less than face value lifts the yield above the profit or coupon rate, because the full face value comes back at maturity.

T-Bond auction yield, 28 July 2026

4.48% (T-Bond maturing 29 January 2031)

At the T-Bond auction of 28 July 2026, the Ministry of Finance allotted AED 550,000,000 of the T-Bond maturing 29 January 2031 at a cut-off yield of 4.48% a year (clean price 97.67, bid-to-cover ratio 4.34).

At the T-Sukuk auction of 22 September 2026, a new sukuk maturing on 24 September 2031 cleared at a yield of 5.06% a year and a clean price of 100.00, the day before the retail offer at the same profit rate opened. Auction yields change as market interest rates move: the T-Bond maturing in January 2031 cleared at 3.90% at its January 2026 auction. For background, see UAE interest rates and the dirham’s peg to the US dollar.

Worked example

Profit on AED 10,000 of Retail T-Sukuk at 5.06%

The holding is an illustration; the rate is that of the September 2026 issue.

1. Profit for a year: AED 10,000 × 5.06% = AED 506.
2. Profit is paid twice a year. The programme counts days on a 30/360 basis, so each half-year is 180 ÷ 360 = 0.5 of a year.
3. Each payment: AED 10,000 × 5.06% × 0.5 = AED 253.
4. Held for the full 5 years: 10 payments × AED 253 = AED 2,530, and the AED 10,000 face value is repaid at maturity.

AED 253 every six months, or AED 506 a year, before any fees.

Tax and fees

For individuals, sukuk profit and repayments are not taxed in the UAE: the Ministry of Finance says that, as the UAE imposes no personal income tax, profit distributions and principal repayments are not subject to local income tax.

Personal income tax

No personal income tax

The UAE does not levy income tax on individuals; it levies 5% VAT, excise tax on specified goods and corporate tax on the net income of corporations and other entities from their business.

Corporate tax does not change this for personal holdings: the Ministry’s announcement of Cabinet Decision No. 49 of 2023 names personal investment income as outside the scope of corporate tax, which applies to business income.

Fractionalised T-Sukuk carry the bank fees shown above; Retail T-Sukuk fees follow the broker’s or custodian’s terms. The Ministry notes that VAT may apply to fees and commissions charged by banks and investment platforms; see how VAT applies in the UAE. An investor who is tax resident in another country may owe tax there on the profit under that country’s rules.

Risks to understand

Federal sukuk rest on the UAE government’s payment obligations under the sukuk contracts, but they are securities, not bank deposits, and they carry risks of their own. The Information Memorandum lists the risk factors in full; the main ones for individuals, drawn from it and the Ministry’s page, are:

• Price before maturity. The face value is repaid at maturity. A holder who sells earlier gets the market price, which the Ministry notes can move with market conditions.
• Liquidity. Selling depends on a working secondary market and on brokers or banks taking part. The Information Memorandum says there is no assurance that an active market will develop or that a holder can sell at the time or price wanted.
• Money committed at subscription. It stays tied up until allocation and any refund.
• Limited recourse. Holders’ claims run through the trust and the government’s obligations under the sukuk contracts, not against other assets.
• Systems. Applications and refunds rely on DFM and bank systems, which the Information Memorandum warns can fail or be delayed.

Shares, property and the residence routes linked to investment are covered in the Investing and residency guides.