Abu Dhabi Islamic Bank (ADIB) announced today the official launch of its fractional sukuk platform, “Smart Sukuk”, a new digital investment solution that enables customers to invest in fractionalized 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 $1,000 compared to the usual $200,000 minimum and expanding access to Sharia-compliant investment products to retail investors.
“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 $1000, thereby reinforcing the UAE’s position as a global hub for Islamic finance and financial innovation,” stated Mohamed Abdelbary, group CEO of ADIB.
ADIB lowers entry points to Sharia-compliant products
With a minimum investment of just $1,000, ADIB’s fractional sukuk 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.
“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,” added Abdelbary.
The launch of the platform comes after ADIB announced the successful testing of the fractional sukuk technology in a safe environment in November last year. ADIB partnered with the Regulations Lab, the SCA and the relevant authorities to test and launch the fractional sukuk.
The technology digitally divides a sukuk into small portions and allows individual investors to pool their money into buying fractional shares of typically expensive corporate sukuks without needing significant capital.
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ADIB accelerates digital transformation
This launch of the fractional sukuk platform is 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 will 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.
“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,” stated Amit Malhotra, global head of retail banking at ADIB.
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.
