Abu Dhabi Islamic Bank becomes first bank to offer fractional sukuk
Abu Dhabi: Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution, has announced the official launch of its Fractional Sukuk platform 'Smart Sukuk', a new digital investment solution that enables customers to invest in fractionalised sukuk certificates directly through the ADIB Mobile App. With this launch, ADIB becomes the first bank to introduce an innovative investment solution that significantly lowers the traditional entry barriers for Sukuk investments, allowing investors to participate with as little as USD 1,000 compared to the usual USD 200,000 minimum, and expanding access to Sharia compliant investment products to retail investors.
With a minimum investment of just USD 1,000, this platform allows retail investors to purchase and trade sukuk at significantly lower entry points, making access to Sharia-compliant fixed-income products more inclusive. With fractional sukuk, retail investors can now diversify their portfolios with high quality sharia compliant fixed-income securities, previously accessible only to institutional investors or high net-worth customers. The offer reflects ADIB's ongoing commitment to financial empowerment and innovation, providing investors with greater flexibility, transparency, and control over their investment journey.
This launch comes as part of ADIB's Vision 2035 to accelerate digital transformation and deliver a comprehensive suite of mobile-first solutions that meet the evolving needs of customers. It builds on the success of recent digital initiatives, including integrating advanced technologies into its core offerings to enhance accessibility, security, and convenience across its digital ecosystem.
Smart Sukuk offers a fully digital investment experience, including onboarding, investor suitability assessments, trading, and access to curated Sharia-compliant sukuk options. Investors benefit from fractional ownership with no lock-in periods, access to relevant documentation, and income distributions based on the performance of the underlying assets. The platform demonstrates ADIB's drive to make ethical investment more inclusive and seamless for customers.
Commenting on the launch, Mohamed Abdelbary, Group Chief Executive Officer of ADIB, said:
'This initiative marks a transformative development in the investment landscape and represents a significant milestone for both ADIB and the UAE. We are proud to be the first bank globally to introduce fractional sukuk investments as low as USD 1000, thereby reinforcing the UAE's position as a global hub for Islamic finance and financial innovation. By offering these fractional sukuk, we are expanding accessibility to Sharia-compliant fixed-income investments, empowering a wider range of retail investors to participate with a minimum investment of USD 1,000.
Abdelbary added: 'This initiative aligns with the ADIB 2035 vision which focuses on building the bank of the future through innovation, customer-centric solutions and leveraging cutting-edge digital capabilities. 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. This is just the beginning, as we continue to drive innovation in Islamic finance and create a more inclusive financial ecosystem for future generations.'
Amit Malhotra, Global Head of Retail Banking at ADIB added: 'We've seen a growing appetite among retail customers for transparent and flexible investment solutions. With the launch of the Fractional Sukuk platform, we're responding to this demand, making it easier for retail investors to access opportunities that were once limited to institutional and high-net-worth investors. This is a major step in expanding access to Sharia-compliant investment products, reflecting ADIB's commitment to delivering practical, customer-first innovations and products."
This groundbreaking initiative is expected to attract a diverse range of investors, from retail customers looking for stable returns to those seeking to diversify their portfolios. It is available on the ADIB Mobile app, offering customers a seamless, secure and fully digital way to invest in fractional sukuk.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
18 hours ago
- Zawya
Muzn Islamic Banking launches the Shari'ah-compliant Direct Debit E-Mandate
Muscat: NBO Muzn Islamic Banking has announced the launch of its Shari'ah-compliant Direct Debit E-Mandate service, to streamline recurring payments for both individuals and businesses. Available on Muzn Islamic Banking's Corporate Internet Banking services and the Muzn Islamic Banking app, the new digital solution complements the nationwide digital transformation efforts by providing a reliable and efficient way to manage high volumes of transactions without delays. Commenting on the launch, Salima Obaid Al Marzoqi, Assistant General Manager and Chief Islamic Banking Officer at NBO, said, "At Muzn Islamic Banking, we recognise that customers seek solutions that align with their values, not just digital services. The Direct Debit E-Mandate reflects our commitment to build a future-ready, Shari'ah-compliant banking ecosystem that meets the evolving needs of both individuals and businesses. It also offers operational efficiency, transparency and trust within a secure, user-centric platform." The Direct Debit E-Mandate enables customers to schedule automated payments directly from their bank accounts, reducing manual processing and administrative costs. This fully digital service helps to ensure cash flow stability, avoid payment delays and have greater control over financial commitments. It also allows customers to create, approve, modify or cancel payment mandates while receiving real-time notifications for all mandate activity and payment transactions, ensuring full transparency and oversight. Supporting various payment frequencies (daily, weekly, monthly, and yearly), this solution is ideal for managing a wide range of recurring payments, including utility bills, loan repayments, business subscriptions, and vendor payments. For more information, please visit
Arabian Post
2 days ago
- Arabian Post
Arada Developments Seeks Debt Financing Amid GCC Boom
Arada Developments has turned to the debt markets for financing, following its decision to issue a sukuk bond aimed at capitalising on the construction boom within the Gulf Cooperation Council region. With its credit ratings from Moody's and Fitch at B1 and B+, respectively, the company has mandated a consortium of major banks to facilitate the issuance of a five-year fixed-rate sukuk. The sukuk will be issued under Arada Sukuk 2 Limited's $1 billion Trust Certificate Issuance Programme, a key structure that offers Arada the flexibility to issue sukuk over a period. The bond is expected to receive a combined rating of B1 from Moody's and BB- from Fitch, which is indicative of a relatively higher risk investment but one with potential returns, especially in the current market context. Several prominent financial institutions have been enlisted to help manage the deal. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mashreq, and Standard Chartered Bank are acting as the joint global coordinators for the issuance. Alongside them, a range of other banks, including Arab Bank, Arqaam Capital, Bank ABC, RAKBANK, Sharjah Islamic Bank, and Warba Bank, are involved as joint lead managers and bookrunners. ADVERTISEMENT The move comes at a time when GCC-based developers are increasingly turning to debt markets to raise funds, particularly as demand for real estate continues to soar in the region. A series of fixed income investor calls kicked off last Thursday, giving potential investors an opportunity to engage with Arada's plans and the offering's prospects. The sukuk offering is poised to benefit from the strong growth momentum in the GCC construction and real estate sector, driven by both government-led infrastructure projects and private sector initiatives. The UAE, in particular, has seen a substantial influx of investments in the property sector, driven by both foreign capital and domestic demand. Major projects across residential, commercial, and mixed-use developments are fueling optimism about the sector's future. In the case of Arada, the company has seen rapid growth since its inception. Founded with the ambition to drive innovation in urban developments, Arada has made strides with large-scale projects in key cities like Sharjah and Dubai. The company's flagship projects, such as the Aljada development in Sharjah, showcase its position as one of the leading developers in the region. However, like many other developers, Arada has faced challenges related to financing and liquidity, with the sukuk issuance being a strategic move to secure funds for continued expansion. The growing reliance on sukuk issuances by real estate developers in the GCC highlights an emerging trend. Developers are increasingly tapping debt markets as a means to fund large-scale projects. Sukuk bonds, due to their compliance with Islamic finance principles, are particularly attractive to investors in the region and beyond. This trend is also a result of the favourable financing conditions that have been available in recent years, with lower interest rates and increased liquidity in regional markets. As the sukuk market expands, there are concerns over the sustainability of such growth, especially in the context of rising interest rates and economic uncertainty in global markets. However, the demand for high-yielding, fixed-income instruments continues to remain strong among investors looking to diversify their portfolios, particularly those seeking assets that align with Islamic finance principles.
Zawya
3 days ago
- Zawya
AlHuda CIBE launches global virtual internship programs on Takaful and Islamic FinTech
Dubai - UAE: AlHuda Centre of Islamic Banking and Economics (CIBE), a well-recognized global name in the Islamic banking and finance industry, has launched two specialized virtual internship programs: Virtual Internship on Takaful and Virtual Internship on Islamic FinTech. These internships are part of AlHuda CIBE's ongoing commitment to build global awareness and enhance professional capacity in the Islamic financial services industry. With more than eighteen years of experience in promoting Islamic finance globally through awareness campaigns, education, advisory services, training programs, and publications, AlHuda CIBE has previously launched a series of highly successful Global Virtual Internship Programs. These initiatives have received tremendous global response, engaging participants from over 50 countries. The Virtual Internship on Takaful is designed to familiarize participants with the foundations, models, operational structures, and global practices of the Takaful (Islamic insurance) industry. As Takaful continues to grow as a key pillar of the Islamic financial ecosystem, this internship offers a unique platform for participants to gain practical understanding of its relevance, applications, and opportunities. Meanwhile, the Virtual Internship on Islamic FinTech addresses the exponential rise of financial technology in reshaping Islamic finance. With FinTech transforming how financial services are delivered, this internship empowers participants to explore innovative business models, Islamic digital banking, blockchain, smart contracts, and regulatory trends driving the next wave of Islamic financial innovation. Both internships span a period of two months and offer a structured learning path that combines theoretical knowledge with practical exposure. Interns will undertake diverse assignments such as research writing, industry data analysis, awareness campaign planning, communication development, strategic networking, and promotion of AlHuda CIBE's advisory, educational and capacity-building services. The program also encourages peer-to-peer collaboration and interaction with industry experts. AlHuda CIBE believes that these virtual internships will not only strengthen participants' knowledge and skills but will also contribute to the global Islamic finance industry by nurturing the next generation of competent professionals. Furthermore, Halal Research Council (HRC) – a sister concern of AlHuda CIBE – has also conducted similar internship initiatives previously to support capacity building in the Halal industry, which continues to gain global prominence due to its ethical, hygienic, and safe nature. These efforts reflect AlHuda CIBE's vision to build inclusive, ethical, and sustainable economic systems through Islamic financial solutions. About AlHuda CIBE: AlHuda Center of Islamic Banking and Economics (CIBE) is a well-recognized name in Islamic banking and finance industry for research and provide state-of-the-art Advisory Consultancy and Education through various well-recognized modes viz. Islamic Financial Product Development, Shariah Advisory, Trainings Workshops, and Islamic Microfinance and Takaful Consultancies etc. side by side through our distinguished, generally acceptable and known Publications in Islamic Banking and Finance. We are dedicated to serving the community as a unique institution, advisory and capacity building for the last twelve years. The prime goal has always been to remain stick to the commitments providing Services not only in UAE/Pakistan but all over the world. We have so far served in more than 35 Countries for the development of Islamic Banking and Finance industry.
