Abu Dhabi’s ADIB unveils platform to broaden sukuk uptake 

Abu Dhabi Islamic Bank (ADIB) has launched a new solution to broaden sukuk participation among retail investors and enhance the Islamic capital market.  

ADIB’s ‘Smart Sukuk’ platform allows customers to invest in fractionalised sukuk certificates via the lender’s mobile app. 

The fractional sukuk platform permits investors to participate with as little as $1,000 (3,672 Emirati dirhams), compared to the traditional minimum investment of $200,000 (734,500 Emirati dirhams). 

Amit Malhotra, group head of retail banking at ADIB said that the bank is unlocking access to Sharia-compliant fixed-income investments for a much broader segment of the retail market. 

These were previously only available to institutional investors and high net-worth customers

“By lowering the entry point, we are advancing financial inclusion within the UAE while introducing a new model for innovation in the sukuk space,” Malhotra told Salaam Gateway. 

“This initiative supports the long-term development of the Islamic capital market by broadening participation [and] enhancing liquidity. “ 

Investors can benefit from fractional ownership with no lock-in periods, access to relevant documentation, and income distributions based on the performance of the underlying assets. 

“We are proud to be the first bank globally to introduce fractional sukuk investments,” added Mohamed Abdelbary, group CEO of ADIB.

“Our goal is to empower more customers, providing them with access to secure, transparent and Sharia-compliant fixed-income opportunities that previously were out of reach for so many.”