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Abu Dhabi Islamic Bank becomes the first UAE bank to safely test fractional Sukuks offering to retail investors

Abu Dhabi: Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution, announced today that it has successfully tested the fractional Sukuk technology in a safe environment to make Sukuk investing more accessible to retail customers after receiving the initial approval from the Regulations Lab within the UAE government under the supervision of the Securities and Commodities Authority (SCA). This supports the UAE leading position as a global hub for technological innovation and financial services. Currently, accessing the Sukuk market requires a minimum investment of USD 200,000. However, with fractional sukuks and as per the initial approval given to ADIB, retail investors will be able to invest as little as USD 1,000, giving them access to the benefits of fixed-income financial products. This presents a new investment opportunity for customers, allowing them to invest in a new asset class with smaller investment amounts offering. This cooperation aims to provide a set of flexible laws and legislation to conduct tests on fractional Sukuk, ensuring the highest levels of safety and risk mitigation in applying new technologies and avoiding risks that arise during the experimental phases. Ultimately, this will foster a secure environment for technological advancement and accelerate the development and market availability of fractional sukuks.