The UAE Ministry of Finance has set the annual profit rate for the second tranche of retail government sukuk at 5.06 per cent. The five-year sukuk will be open to eligible UAE citizens and residents from September 23 to 28, 2026, with a minimum subscription of Dh1,000. The target size of the issuance is Dh50 million.

Profits will be paid every six months in accordance with Islamic finance principles. The principal investment will also be repaid under the terms of the issuance if the sukuk are held to maturity.

At the announced rate, a Dh1,000 investment will generate an annual profit of Dh50.60, equivalent to Dh25.30 every six months. A Dh10,000 investment will earn Dh506 a year and a total of Dh2,530 over five years if held to maturity. A Dh50,000 investment will generate Dh12,650 in profit over five years. These calculations exclude any potential costs and fees.

Compared with the first tranche, the UAE’s second retail government sukuk offering has a longer maturity and a higher profit rate. The first tranche had a two-year maturity and an annual profit rate of 4.30 per cent. Demand reached Dh445 million, against an initial offering size of Dh50 million, prompting the government to increase the issuance to Dh100 million.

Applicants must have a Dubai Financial Market investor number (NIN) and a registered mobile phone number. Subscriptions can be submitted through the DFM eIPO platform, the iVestor and DFM apps, and the digital channels of participating banks. Sukuk allocation is scheduled for September 29, with refunds of excess funds due on September 30.

Trading in the sukuk is scheduled to begin on Nasdaq Dubai on October 1. Investors may sell their holdings on the secondary market before the five-year maturity date, but the sale price may be lower or higher than the original investment. Submitting an application does not guarantee full allocation of the requested amount, particularly if demand is high.