The Ministry of Finance signs the first agreement within the initiative "Individual bonds" With Abu Dhabi Islamic Bank

ABU DHABI, 3rd November, 2018 (WAM) – The Ministry of Finance signed a cooperation agreement with Abu Dhabi Islamic Bank, making it the first bank to participate in implementing the “Individual Sukuk” initiative that the Ministry recently launched, with the aim of enabling citizens and residents to invest in government Islamic treasury bonds easily and safely, and through innovative digital channels. Under the agreement, individual investors in the UAE can begin investing in Islamic treasury sukuks through the “Smart Sukuk” platform of Abu Dhabi Islamic Bank, which allows investment in segmented sukuks, and the ability to access and purchase treasury sukuks in small financial denominations, in line with the objectives of the Ministry of Finance in expanding the investor base and enhancing financial inclusion. The “Smart Sukuk” platform is characterized by investment flexibility, as the minimum amount is 4,000 dirhams and in increments of 4,000 dirhams, while the maximum amount reaches 28,000 dirhams for each transaction, with the possibility of carrying out multiple operations. The platform also allows investors who have an Emirates ID card or a “UAE PASS” account to register electronically, complete “Know Your Customer KYC” procedures, and create a risk file directly through the platform, in addition to viewing a terms and conditions bulletin. Sukuk and details of the deal. His Excellency Younis Haji Al Khouri, Undersecretary of the Ministry of Finance, said that signing the agreement with Abu Dhabi Islamic Bank comes as a first step in implementing the Individual Sukuk initiative, which reflects the ministry’s commitment to implementing the vision of the wise leadership in empowering society economically and promoting a culture of saving and sustainable investment. His Excellency added: Through this agreement, we are enabling For individuals, an integrated digital experience for investing in Islamic treasury sukuks ensures ease of access and full compliance with the provisions of Islamic Sharia, and provides a safe savings and investment tool that supports the stability of families and society. Speaking to the Emirates News Agency, WAM, His Excellency Younis Haji Al Khouri confirmed that the “fractionated sukuk” initiative for individuals represents a qualitative new step in developing financing and saving tools within the country, as it allows citizens and residents to invest in treasury sukuks denominated in the UAE dirham and that are compatible with the provisions. Islamic law through the digital platforms of the participating banks, with a minimum of 4,000 UAE dirhams. His Excellency explained that the initiative enables the participating banks to offer segmented shares of existing and future government bonds according to the volume of demand from their customers, which enhances the flexibility of the initiative and its response to the needs of the market and society, and provides the opportunity to participate in safe financial instruments supported by the federal government that were previously limited to large institutional investors. He added that the initiative enables investors from different categories to contribute to achieving the strategic objectives of the program, which are to develop a market Local debt and diversification of financing sources, to support financial stability and enhance the culture of long-term savings. He stressed that sukuks are an important tool for both saving and investment, as they help individuals manage their money in an organized manner with guaranteed returns, and provide them with a means to achieve financial stability and contribute to development projects in the country. His Excellency explained that all stages of investment are completely digital, starting from the purchase process until sale or exit, without the need for any paper transactions, in the context of supporting the complete digital transformation of government financial services. He added that sukuks are currently available through Abu Dhabi Islamic Bank First, provided that other banks will join soon after completing the necessary technical infrastructure requirements to be offered on digital platforms. His Excellency stressed that participation is available to all citizens and residents of the country who have valid bank accounts and meet the requirements of the participating banks for “Know Your Customer” procedures, indicating that the process is simple and completed entirely through the smart applications of the participating banks. He said that the UAE Dirham Individual Sukuk initiative represents a new stage in the process of inclusion, financial awareness, and the development of the local debt market, and consolidates the UAE’s position as a leading financial center. At the regional and global levels, by providing innovative and sustainable financial tools to individuals and institutions, which contributes to enhancing financial inclusion and sustaining economic growth in the country. For his part, His Excellency Joaan Awaida Suhail Al Khaili, Chairman of the Board of Directors of Abu Dhabi Islamic Bank, said: We are pleased to be the first partner in this pioneering program, which contributes to enhancing investment opportunities for various segments of investors. By bridging the gap between institutional markets and those designated for individuals, we allow everyone to invest in high-quality, low-risk sovereign sukuks. Supported by the government, this cooperation embodies our commitment to innovation, financial inclusion and the development of the Islamic finance sector, in line with the strategic vision of the UAE. Mohammed Abdul Bari, CEO of Abu Dhabi Islamic Bank Group, said on the sidelines of the signing of the agreement that the agreement signed with the Ministry of Finance to issue individual sukuks denominated in the UAE dirham represents an important achievement in the process of developing Islamic finance tools in the UAE, noting that it provides for the first time all categories of investors, both citizens and residents, the opportunity to enter the sukuk market in an easy way. Abdul Bari added to the Emirates News Agency, WAM, that this agreement with the Ministry of Finance came as a result of efforts that continued for a long period of joint work, to open the way for individuals, and not just institutions or large investors, to participate in the sukuk market, which was previously limited to a limited group of high-net-worth people. He explained that the initiative relies on coding technology that enables sukuks to be divided into smaller units, allowing individuals to subscribe to them with amounts starting from 4,000 dirhams only, after the minimum investment in This type of financial instrument previously reached approximately $200,000. The CEO pointed out that the entire subscription and management process is 100% digital, as ADIB customers can access the sukuk through the bank’s smart application without the need for any paperwork or direct communication with employees. All Ministry of Finance sukuk will be listed on the platform, except for those approaching their maturity date, without the need for approvals from regulatory authorities, as ADIB will manage the sukuk balance through the initial allocation or through secondary market operations. Awareness and education sessions will be organized for investors, a frequently asked questions section will be available on the platform, and periodic questionnaires will be conducted to receive feedback and address complaints internally, to ensure a transparent and integrated investment experience. The Ministry of Finance confirmed that the signing of this agreement represents the first stage of a series of strategic partnerships that will be announced successively with a number of national banks participating in the initiative, with the aim of making investment in Islamic treasury bonds available on a wider scale, enhancing financial awareness among segments of society, and establishing the concept of responsible saving as one of the pillars of financial sustainability in the country The initiative allows individual investors to easily view the details of the sukuk via the digital platforms of the participating banks, including profit and maturity schedules, transaction fees, and early redemption channels. The Ministry also explained that a preferential fee structure and clear regulatory legislation have been adopted to ensure complete transparency and ease of investment, as part of the Ministry’s endeavor to enhance investor confidence and expand access to government Islamic financing tools.

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