“Finance” launches the first issuance of government treasury bonds to individuals

Yesterday, the Ministry of Finance announced the launch of the first program for government treasury bonds for individuals, citizens and residents, in the UAE, which is compatible with the provisions of Islamic Sharia, according to a subscription mechanism similar to the initial public offerings followed in the Dubai Financial Market and the Nasdaq Dubai Stock Exchange. The program aims to expand the scope of participation in government investment tools, and enable individuals and families to access investment opportunities supported by the UAE government.

The Ministry stated, in a statement, that the launch of the program comes with the aim of enhancing financial inclusion and establishing a culture of long-term saving and investment, in line with the “Year of the Family 2026” initiative in the UAE, which aims to build a more financially aware and future-ready society. The program also contributes to strengthening the country’s position as a leading global financial center that provides innovative and diverse investment products.

Minister of State for Financial Affairs, Mohammed bin Hadi Al Husseini, confirmed that the launch of the government treasury bonds program for individuals represents a strategic step within the UAE’s efforts to develop its financial system and expand the scope of community participation in government investment tools, in a way that enhances financial inclusion and supports building a more diversified, flexible and sustainable economy.

He said that the program reflects the approach of the Ministry of Finance, in cooperation with the Central Bank, in creating financial tools that keep pace with the aspirations of society and contribute to establishing a financial culture based on saving, planning and long-term investment, noting that the initiative was designed to enable individuals and families to play an active role in supporting the country’s economic development process.

Al Husseini explained that the program is consistent with the broader goals of the UAE in enhancing the awareness of community members about the importance of long-term financial planning, creating a supportive environment that enables individuals to build more sustainable financial capabilities, and entrenching the concept of participation in the national development agenda.

He stressed that the Ministry of Finance continues its commitment to developing local capital markets, and strengthening the UAE’s leadership as a global financial center that provides innovative and diversified investment solutions, and supports building a more comprehensive, competitive, and future-ready financial system.

The program targets individuals in various parts of the UAE, by providing a safe, government-backed investment tool, with a minimum subscription of 1,000 dirhams. It also provides investors with potential risk-free returns on government treasury bonds within a transparent and regulated investment framework, with the possibility of trading the bonds on Nasdaq Dubai after their listing, which enhances ease of access to government investment products and the flexibility of liquidity associated with them. Full details of this first issuance will be announced next week, including the profit rate and the term of the bonds. And the subscription period.

The program is being launched in cooperation with a number of partners, including the Dubai Financial Market, Nasdaq Dubai, and the receiving banks, as Emirates NBD was appointed as the main receiving bank, while Emirates Islamic, Abu Dhabi Islamic Bank, Ajman Bank, and Mashreq Bank were appointed as receiving banks, allowing investors to subscribe seamlessly, through the partners’ digital platforms and dedicated subscription channels.

The sukuks are scheduled to be listed on Nasdaq Dubai and made available for trading after the completion of the offering process, which will support broader participation by individual investors in the local capital markets, enable them to trade the sukuks within a regulated financial market, and provide them with greater flexibility in managing their investments after the subscription and allocation stages.

The program represents a qualitative addition to the system of government investment products in the UAE, by providing a regulated channel that allows individual investors to diversify their investment portfolios through a reliable tool supported by the government, within an advanced and transparent financial environment. It also enhances the role of financial markets in providing innovative and diversified investment solutions that meet the needs of individual investors.