Introducing “Retail Sukuk (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.
Backed by the UAE Government
Low Minimum investment of AED 4,000
Diversify Your Investments
Long-term saving for individuals and families
Regular alternate source of income
Managed digitally through EI +
Contribute to the UAE’s growth story
Issued by the UAE Government, Retail Sukuk (T-Sukuk) represents a secure and transparent way to support national market development while enhancing your personal investment portfolio.
Step 1
Access the ‘Wealth Portfolio’ option directly from your dashboard.
Step 2
Start from AED 4,000 and build your sukuk holdings at your own pace.
Step 3
View portfolio details anytime on EI +.
Start small, diversify and grow your portfolio consistently with Retail Sukuk (T-Sukuk).
The main risk factors related to Sukuk/Fractional Sukuk/Retail Sukuk (T-Sukuk) 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 Islamic in connection with such decision.
Risk / default risk
The value of the Sukuk 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 Issuer will be unable to pay the contractual profit on the Sukuk and/or its principal, in a timely manner, or at all. Emirates Islamic does not guarantee or warrant any obligations of the Security Issuer to pay the principal amount of the Sukuk , or any contractual profits earned thereon.
Profit rate risk
Market profit 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 profit rate rise from the date of the Sukuk purchase, the Sukuk price will fall accordingly. The Sukuk 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, profit 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 Sukuk is capital protected, the stated level of capital protection only applies at maturity. The sale of the Sukuk 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 in finding a price to sell an investment you have made. In 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 spot foreign exchange rates. Adverse exchange rate movements may erase profit 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 spot exchange rate. The
spot 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 spot exchange rate of the currency in which they are denominated.
Embedded Shariah compliant hedging instruments
The investment may comprise embedded hedging instruments. Please refer to the Issuer’s Prospectus for details. Action by the issuer on the back of an embedded hedging instruments will impact your expected pay-off from the investment. For example, a Callable Sukuk has call provisions, which allows the Sukuk issuer to buy back the Sukuk from the Sukuk holders and retire the issue at a predetermined price. This is usually done when profit rates have fallen substantially since the issue date. Call provisions allow the issuer to retire the old high profit rates Sukuk in a bid to lower financing costs. Under these circumstances you will be forced to give up a high yielding security, with an adverse effect on the anticipated return.
