Retail Sukuk

Invest in “Retail Sukuk” from AED 4,000

Introducing “Retail Sukuk” (T- Bonds and T-Sukuk), an innovative way to participate in the UAE’s economic growth while accessing steady returns. Invest from just AED 4,000 and enjoy the benefits of stable, predictable income and long-term portfolio balance.

Why invest in Retail Sukuk?

Exclusive Banking Centers in Dubai and Abu Dhabi

Backed by the UAE Government

Every digital payment is a step towards Japan

Low minimum investment of AED 4,000

Diversify your investments

Steady returns of 3.66%

Long-term saving for individuals and families

Regular alternate source of income

Managed digitally through ENBD X

Contribute to the UAE’s growth story

Issued by the UAE Government, Retail Sukuk represents a secure and transparent way to support national market development while enhancing your personal investment portfolio.

How to invest

Step 1

Log in to ENBD X

Access the ‘Wealth Portfolio’ option directly from your dashboard.

Step 2

Select your Retail Sukuk

Start from AED 4,000 and build your sukuk holdings at your own pace.

Step 3

Track and manage easily

View portfolio details anytime on ENBD X.

A helpful guide to Bonds and Sukuks

Find out details about Bonds and Sukuks

A bond is a debt security issued by a government/corporation or any other entity to raise funds. It is a contract to repay borrowed money with interest at fixed dates (it is like a loan where the issuer is the borrower, and the holder is the lender). Bonds are not capital protected, and you can lose your money.

Sukuk is a form of Shari'ah-compliant fixed-income capital markets instruments that represent an interest in an underlying funding arrangement structured according to Islamic finance norms. Investment Sukuk are certificates of equal value representing undivided shares in ownership of tangible assets, usufruct, and services or (in the ownership of) the assets of particular projects or special investment activity,

Bonds are issued to fund day-to-day operations or to finance specific goals. When you buy a bond, you are lending your money for a certain period of time to the issuer. In exchange, the borrower promises to pay you interest every year and to return your principal at ‘maturity’, when the loan comes due, or at ‘call’ if the bond is of the type that can be called earlier than its maturity (more on this later). The length of time to maturity is called the ‘term’.

A bond’s notional value, is known as its ‘par value’ which is typically 100. Its interest payment is known as its ‘coupon’.

The clean price refers to the bond’s price excluding accrued interest. In contrast, the dirty price includes both the clean price and the accrued interest.

Disclaimer

The main risk factors are summarized below for your information

You should understand the nature of the risks associated with each and every circumstance outlined below and should obtain relevant and specific professional advice before making any decision. The list below does not, however, claim to be a complete list of all related risks. You should assume all risk associated with any decision you make and you shall have no right against Emirates NBD in connection with such decision.

Risk / default risk

The value of the security may decline for a number of reasons which directly relate to the issuer, including, but not limited to, the issuer’s credit worthiness. In addition, there is a risk that the Security Issuer will be unable to pay the contractual interest on the security and/or its principal, in a timely manner, or at all. Emirates NBD does not guarantee or warrant any obligations of the Security Issuer to pay the principal amount of the security, or any contractual interests accrued thereon.

Interest rate risk

Market interest rates are a function of several factors such as the demand for, and supply of, money in the economy, the inflation rate, the stage that the business cycle is in, as well as the government's monetary and fiscal policies. Should the market interest rate rise from the date of the security’s purchase, the security’s price will fall accordingly. The security will then trade at a discount to the purchase price.

Market risk

Market movement, which can be influenced by many factors, including, but not limited to, issuer risk, interest rate risk, market sentiment and changes in economic, financial or political environments may result in the fluctuation of prices. Market risk results from the unpredictability of market movements and is inherent in any investment; such risk may cause the value of the investment to fall rapidly, as well as rise, and you may not get back the amount originally invested.

Sale prior to maturity

Where a security is capital protected, the stated level of capital protection only applies at maturity. The sale of the security prior to the stated maturity date may result in you receiving an amount less than that originally invested at inception. The sale price would be a function of fees, and prevailing market conditions.

Lack of liquidity and secondary market trading

Lack of liquidity may result in difficulty finding a price to sell an investment you have made. In the case of company bankruptcy, suspension of trading, takeover rumors, or flights of capital from a country in crisis, this may mean it is impossible to find any price to close out your position. This could lead to substantial losses up to the value of the investment. No assurance can be given that any trading market for the securities will exist or whether any such market will be liquid or illiquid. If the Securities are not traded on any exchange, pricing information may be more difficult to obtain, and the liquidity and price of the Securities may be adversely affected.

Currency risk

Changes in exchange rates between currencies or the conversion from one currency to another may cause the value of the investment to diminish or increase. Currency exchange rates may fluctuate significantly over short periods of time. Earnings on investment in foreign currencies are dependent on the prevailing foreign exchange rates. Adverse exchange rate movements may erase interest earnings completely or cause a loss of principal relative to your home currency. Investments in assets denominated in a foreign currency are subject to the risk of movements in that currency's exchange rate. The exchange-rate risk on investments in foreign-currency denominated assets applies not only to investments returnable in these foreign currencies, but also to the assets denominated in the foreign currencies and traded in the domestic currency, since their price development usually tracks changes in the exchange rate of the currency in which they are denominated.

Embedded options

The investment may comprise embedded options such as a callable option, a cap on the coupon of a floating rate bond, an option to switch fixed to floating coupon and vice versa, etc. Please refer to the Issuer’s Prospectus for details. Action by the issuer on the back of an embedded option will impact your expected pay-off from the investment. For example, a Callable Bond has call provisions, which allows the bond issuer to buy back the bond from the bondholders and retire the issue at a predetermined price. This is usually done when interest rates have fallen substantially since the issue date. Call provisions allow the issuer to retire the old high coupon bonds in a bid to lower debt costs. Under these circumstances you will be forced to give up a high yielding security, with an adverse effect on the anticipated return.

Start small, diversify and grow your portfolio consistently with Retail Sukuk.

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