Category: Business

ABU DHABI: S and P Global Ratings, the global credit rating agency, confirmed that the total assets of the global Islamic finance sector continue on a path of rapid growth, pointing to the sector’s accelerated growth in the UAE last year due to the strong performance of the non-oil economy.

The agency added, in a recent report titled ‘Islamic Finance 2024-2025: Resilient Growth Anticipated Despite Missed Opportunities’, that it expects high single-digit growth in the period 2024-2025 after the sector achieved 8 percent growth in 2023.

According to the report, sukuk issuances are expected to range between US$160-170 billion in 2024, boosting sector assets’ growth in 2024, while further growth is likely to be witnessed in the Islamic investment funds and Takaful sectors.

The agency explained in its report that the sukuk market started strong in 2024, with total issuances reaching $46.8 billion by 31st March, 2024, compared to $38.2 billion in the same period of the previous year. Islamic banking assets contr
ibuted 56 percent to Islamic finance sector growth in 2023, compared to 72 percent in 2022, indicating that financial institutions in all Gulf countries accounted for 86 percent of asset growth in 2023, with Saudi Arabia being the main contributor, achieving 56.7 percent of the growth. It also expected Saudi Vision 2030 and the growth in corporate lending and mortgage financing to continue supporting the Islamic finance sector over the next 12-24 months.

Additionally, the report noted that “the UAE’s contribution was strongest in 2023 due to the strong performance of the non-oil sector, and in other countries, we observed some growth, especially in Turkiye and Indonesia, while performance declined somewhat in Malaysia and Trkiye due to the depreciation of the ringgit and the Turkish lira”.

The agency expected the Islamic banking sector in the Asia-Pacific region to achieve significant growth, driven by high single-digit demand for Islamic products and services and untapped market potential in Indonesia, Ban
gladesh, and Pakistan over the next two years.

Source: Emirates News Agency

RIYADH: Abdullah bin Touq Al Marri, Minister of Economy, led the UAE delegation at the World Economic Forum (WEF) Special Meeting on Global Collaboration, Growth and Energy for Development in Riyadh, Saudi Arabia, which was held on 28th and 29th April. The delegation included Abdullah Ahmed Al Saleh, Under-Secretary at the Ministry of Economy.

At the forum, Bin Touq took part in a session on the future of sustainable tourism development and leveraging tourism’s potential as a primary driver for agile economic growth. Other participants included Ahmed Al Khatib, Saudi Minister of Tourism; Thiago Alonso de Oliveira, CEO of JHSF; Jerry Inzerillo, CEO of Al Diriyah Group; and Aireen Omar, President and CEO of RedBeat Capital, Capital A (AirAsia).

Acknowledging the tourism sector’s key role in boosting global economic growth, Bin Touq said that it also serves as a key pillar in the achievement of SDGs by 2030. This is due to its significance and broad impact on delivering sustainable development for nations thro
ugh increasing revenues, attracting FDI, creating job opportunities, establishing varied tourism ventures, and enhancing transport infrastructure.

Bin Touq explained that in addition to contributing to the growth of related services and industries such as hospitality, transport services, leisure and retail sectors, tourism contributes to creating job opportunities for people of all ages, reducing unemployment rates. He further pointed out that by 2033, this dynamic sector is projected to boost its contribution to the global GDP to US$15.5 trillion, accounting for 11.6 percent of the world economy. It is expected to provide employment for around 430 million individuals globally, which makes up almost 12 percent of the global workforce, as per the World Travel and Tourism Council’s projections.

Importance of sustainability in advancing tourism

During the session, Bin Touq emphasised that sustainability is key to boosting the tourism sector’s growth in the immediate future, particularly given the current glob
al environmental and social challenges. It calls for strengthening the collaborative efforts across all fronts and levels to attain harmony between economic and environmental progress as well as social accountability.

Furthermore, Bin Touq highlighted the UAE’s commitment to enhancing the regional and global tourism infrastructure to ensure the sustainability of the sector. He indicated that there are challenges ahead for sustainable tourism, most notably the necessity to upskill the workforce, improve their performance and expertise in tourism, and foster innovation and creativity across various tourism fields and activities.

The Minister of Economy said: ‘The UAE is committed to promoting sustainability, not just in the tourism industry but across diverse economic and environmental sectors, safeguarding resources, wealth, and natural reserves, especially following the announcement by His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, extending the ‘Year of Sustainability’ to the year 2
024 with the aim of building on the success of this initiative last year.’

National initiatives and strategies to promote sustainable tourism growth

Bin Touq emphasised that the UAE attaches significant importance to the tourism sector, recognising it as a key contributor to national economic growth and enhancing its competitiveness and diversity. The country has successfully highlighted its tourism diversity in the past phase, promoting the unique features and characteristics of all seven emirates, with the aim of attracting more global companies to its markets. These achievements encourage national and foreign investments in tourism projects, thereby consolidating the UAE’s position on the travel and tourism landscape at regional and global levels.

Elaborating on the UAE’s experience in developing its tourism sector in accordance with international best practices and making it more flexible and sustainable, Bin Touq said that these included the promotion of sustainable tourism practices such as eco-frien
dly accommodation, wildlife conservation, cultural heritage, and the launch of national initiatives and strategies such as the ‘National Tourism Strategy 2031’. The strategy aims to increase the contribution of the UAE tourism sector to the national GDP to AED450 billion, raising the country’s profile as the best tourism identity by the next decade. Besides, through the launch of the National Sustainable Aviation Fuel Roadmap, the country has set an ambitious target to achieve annual production of up to 700 million litres of sustainable aviation fuel by 2030.

Role of ecotourism in promoting sustainability of national tourism sector

Bin Touq noted the importance of ecotourism in supporting the sustainability of the tourism sector and preserving natural reserves and desert attractions. He presented examples of sustainable tourism in the UAE, including the Al Marmoom Conservation Reserve, which balances the experiences of visitors with the preservation of the environment, in addition to Sir Baniyas Island whic
h has ecotourism potential. He also highlighted major international events hosted by the country such as Expo 2020 Dubai and COP28, which also played a prominent role in promoting tourism growth.

UAE tourism sector achieves record in key performance indicators

Reviewing performance indicators and results achieved by UAE tourism in 2023, Bin Touq confirmed its full recovery from the pandemic and return to higher levels of growth than 2019. The national tourism sector grew by a significant 26 percent in 2023 compared to that of 2022 and surpassed 2019 levels by 14 percent. Its contribution to the country’s GDP amounted to AED220 billion, accounting for 11.7 percent. This is expected to rise in 2024 to AED236 billion, equivalent to 12 percent of the country’s GDP, according to a recent report by the World Travel and Tourism Council.

In addition, this vital sector provided 809,000 jobs in various activities and tourism fields in the country in 2023, equivalent to 12.3 percent of the total labour market. With a
five percent growth from 2022, exceeding 2019 levels with 11.4 percent growth, the number of jobs it creates is expected to reach 833,000 in 2024. There are currently 1,235 hotels in the UAE providing a total of 210,000 rooms for guests and visitors.

Unified GCC Tourism Visa

Bin Touq explained that efforts are underway in collaboration with other GCC partners to launch the unified GCC tourist visa. Once it comes into effect, it will contribute to highlighting the diverse tourism destinations in GCC countries, attracting and retaining tourists for longer periods, thus increasing the number of hotel guests and making the region one of the leading destinations for regional and international tourists alike.

World Economy Forum Special Meeting, Riyadh

Saudi Arabia’s capital Riyadh hosted the special meeting of the World Economic Forum, its first meeting outside Davos after the COVID-19 pandemic. More than 1,000 participants attended the Forum, including senior officials, international experts, opinion leaders
and intellectuals from government and private sectors, international organisations and academic institutions to discuss various global economic issues and developments with an aim to find common solutions to address them.

Source: Emirates News Agency

SHARJAH: Alef Group, the leading real estate development company in the emirate of Sharjah, has announced the handover of 819 residential units to customers at Al Mamsha, Souks’s zone.

Issa Ataya, CEO of Alef Group, said, ‘This milestone marks a significant moment in the growth of the community, and it’s truly a testament to the remarkable development of Al Mamsha and Sharjah. Customers and residents benefit from our unwavering commitment to exceptional quality.’

He added, ‘Al Mamsha holds a special significance in Muwaileh, serving as a vibrant hub for residents and businesses alike. Its unique footprint in the area has not only transformed the landscape but also enriched the community with its diverse offerings.’

The Al Mamsha Souks project features a mix of one-, two-, and three-bedroom apartments, meticulously designed and curated to the exact needs of residents, allowing for comfort without compromising on aesthetics.

Al Mamsha Sharjah, located in the heart of New Sharjah, is a vibrant community that
offers residents an elevated and unparalleled lifestyle. The development, which seeks to showcase local talent and entrepreneurship, has transformed the project into a trendy and highly advanced destination for all ages.

Al Mamsha Souks was inspired by the architecture of the old souks in the emirate of Sharjah. It was designed with the latest style according to a sustainable environment that enhances human health and well-being using shaded pedestrian paths that harmonize with architecture designed to provide comfort, safety, and privacy for residents and visitors.

Al Mamsha Souks is the zone 1 of Al Mamsha Sharjah by Alef Group which includes 33 buildings, retail shops, kids play area, and many more.

The mixed-use development represents the vital element at the heart of Al Mamsha project, as it is characterised by its lively atmosphere inspired by the old Khan souks, which is full of original culture and customs, and carries with it the freshness of ancient life and the smell of ancient heritage.

Amenit
ies for residents include enhanced security, swimming pools, gymnasiums, landscaped gardens, parks and children’s play areas.

Source: Emirates News Agency

ABU DHABI: The UAE has initiated a transformative fiscal policy with the introduction of a federal corporate tax, aiming to cement its economic future’s resilience and prosperity. This strategic policy shift, outlined in Federal Decree-Law No. (47) of 2022, aligns with international tax standards and best practices, further solidifying the UAE’s stature as a competitive global financial and business centre.

This new taxation framework, informed by extensive benchmarking and impact assessments, ensures public participation through a digital consultation phase. It spans the UAE’s free zones, which are integral to its diversified economic framework and international investment attractiveness. The tax policy is designed to amplify the UAE’s development as a global commerce and finance nexus by encouraging the free movement of capital and business expansion.

From June 2023, corporate tax stands levied at 0 percent for annual taxable incomes up to AED375,000 and 9 percent beyond that threshold. Free zone commerci
al transactions maintain the 0 percent rate, underscoring the UAE’s globally competitive tax environment. The OECD’s recognition of the UAE tax system within the top tier of 134 worldwide systems attests to its robustness and global alignment, particularly with the goals of the Base Erosion and Profit Shifting (BEPS) project.

The corporate tax’s vital role in sustainable development lies in its ability to foster a sustainable revenue base, advance the country’s strategic objectives, and uphold tax transparency and fairness. The legislative framework and subsequent regulatory decisions have been meticulously crafted, involving updates to existing tax procedures and regulations to improve societal, environmental, and fiscal health in coordination with the Federal Tax Authority.

Sustainable Development

The UAE has incorporated sustainable development goals as a cornerstone of its vision for the future, particularly within its National Agenda 2030. In 2019, the UAE established the National Committee for Sustai
nable Development Goals to oversee the implementation and progress of these goals on a national scale. This body actively involves stakeholders in the process. It regularly reports on the UAE’s progress, ensuring that sustainable development goals are interwoven with the nation’s development priorities.

The committee evaluates the influence of tax policies on economic growth, and the UAE has been proactive in reforming these policies to address growth challenges, improve inclusivity, and support sustainable economic expansion. These reforms include simplifying the tax system and broadening its base, thus promoting a fair recovery and financial improvement.

Since October 2017, the UAE has broadened the range of goods subject to tax and has continuously updated tax regulations to increase taxpayer flexibility. Notably, it has reduced penalties for non-compliance with value-added tax and introduced a temporary exemption system offering a substantial reduction in fines.

In 2018, the UAE committed to the BEPS p
rogramme’s inclusive framework and supported the OECD’s Pillar Two initiative. This initiative establishes a global minimum corporate tax rate to prevent base erosion and profit shifting (BEPS), counter harmful tax practices, and promote global tax fairness.

The UAE has distinguished itself as a regional leader by initiating a public digital consultation on the global minimum tax, thus becoming the first country in its region to do so. This consultation encourages feedback from a broad spectrum of international stakeholders, reflecting the UAE’s commitment to crafting tax policies that support its strategic goals of competitiveness, ease of doing business, and investor confidence.

Strategic Directions and Partnerships

The UAE has introduced a federal corporate tax system as a key component of its broad transformational projects aimed at fortifying the nation’s financial infrastructure to effectively manage future challenges and adhere to its national priorities. This initiative is a collaborative effort be
tween the Ministry of Finance and the Federal Tax Authority, ensuring the efficient administration, collection, and enforcement of the new tax laws.

These reforms are part of the UAE’s strategy to bolster its economic resilience over the next decade and beyond, as it aspires to maintain its leadership in digital government innovation. The Ministry of Finance’s strategic plan for 2023-2026 is centred on financial sustainability, including developing balanced tax policies responsive to local and global economic trends.

The introduction of corporate tax is a proactive measure in response to the dynamic global economy, marked by volatility and financial uncertainty, including concerns over global financial stability, growing global debt, rising inflation, and the urgent need to confront climate change. The tax is designed to ensure financial sustainability and inclusivity for the future.

Mobilising public revenue through this corporate tax is crucial for the UAE, as it seeks to build stable and sustainable gov
ernment revenue streams. Such financial stability is key to supporting projects that align with sustainable development goals, enhancing local resources, diversifying income sources, and ensuring a sustainable flow of finances. These measures are expected to positively impact the nation’s economy and society by funding developmental projects that contribute to the overall well-being and growth of the UAE.

Regulatory Decisions

Following the establishment of the federal corporate tax law in the UAE, the Cabinet and the Ministry of Finance have released over 25 detailed regulatory decisions to guide its implementation and clarify its provisions. Key decisions include exemptions from tax registration for certain entities, stipulations for taxable persons and companies in the free zone to maintain audited financial statements, and conditions under which non-residents are not deemed to have a permanent establishment in the UAE for tax purposes.

The Ministry has also outlined requirements for maintaining transfer
pricing documentation and set forth conditions for corporate tax exemptions. It has established decisions regarding accounting standards, pension funds, social security, participation exemptions, transitional provisions for corporate tax, tax groups, interest deduction restrictions, and the tax treatment of joint ventures, foreign partnerships, family establishments, and intra-group transfers.

Furthermore, specific ministerial decisions address the tax treatment of resident and non-resident individuals, the conditions for investment funds, and the definition of public benefit entities eligible for corporate tax exemption. The Cabinet has also set administrative fines for violations of the corporate tax law, with significant penalties for delayed tax registration as determined by the Federal Tax Authority.

These decisions reflect the UAE’s dedication to creating a transparent, fair, and competitive tax environment that supports economic growth and affirms the country’s commitment to becoming a global trade a
nd investment hub. The issuance of Cabinet Decision No. (74) of 2023 marks a significant update to the existing tax procedures, in line with the new Tax Procedures Law, ensuring that taxpayers are well-informed and compliant with the current tax system from its effectivity date.

Awareness and Consultation

The UAE Ministry of Finance is actively working to ensure that the business community understands the new federal corporate tax law, its framework, and its specific implications for various business sectors and taxpayer groups. The Ministry has initiated public awareness sessions for the general public and the media to demystify the provisions of corporate tax law and demonstrate its economic impact, covering both mainland and free zone areas.

Emphasising the necessity of accurate information, the UAE Ministry of Finance asserted that official communication, such as releases and bulletins issued by both the Ministry of Finance and the Federal Tax Authority, should be the sole sources of information regard
ing the interpretation and application of Federal Decree-Law No. (47) of 2022 on corporate tax, its subsequent amendments, and related ministerial decisions. This approach underscores the government’s commitment to transparency and the correct dissemination of information concerning federal taxes in the UAE.

Source: Emirates News Agency

SHARJAH: In partnership with MoIAT’s ‘Make it in the Emirates” initiative, Emirates Development Bank (EDB), today hosted the highly anticipated Sharjah edition of EDB Connect at the Sharjah Research, Technology, and Innovation Park, convening key industry leaders, government officials, and business innovators to discuss, debate, and shape the future of Sharjah’s economy with a focus on how strategic partnerships can empower sustainable growth.

EDB Connect is a series of forums organised by EDB in partnership with the Ministry of Industry and Advanced Technology’s ‘Make it in the Emirates” initiative. The forums aim to foster collaboration between government entities and private sector companies to drive UAE’s national economic growth and diversification.

Held under the theme of ‘Fostering Strategic Partnerships to Shape Sharjah’s Sustainable Economic Landscape,’ the day’s agenda explored how federal and local efforts, along with dynamic public-private partnerships, can foster an ecosystem that attracts busi
nesses and investments.

Focused sessions highlighted the role of strategic partnerships in driving economic growth and innovation, as well as the mechanisms supporting entrepreneurs and driving the emirate’s emergence as a leading incubator for startups and SMEs in the region.

In his welcome address, Ahmed Mohamed Al Naqbi, Chief Executive Officer of Emirates Development Bank, said, ‘EDB Connect is ultimately a platform where ideas converge, partnerships are forged, and strategies are crafted to drive sustainable growth. Our focus is on nurturing strategic partnerships that align with Sharjah’s economic aspirations and the broader goals of the UAE.

‘In our role as the federal development bank of the UAE, we see Sharjah a dynamic emirate that is a hub for culture, education, agritech, manufacturing, and increasingly, sustainable economic development. At EDB, our commitment is to catalyze the economic diversification of the UAE – a role that is evidenced by our substantial financial engagements across every
emirate of the UAE. Our total financing across the emirates amounted to AED10.4 billion since the launch of our new strategy in 2021. In Sharjah alone, our financing has reached AED837 million across key sectors that are crucial to the UAE’s broader development objectives.’

He added, ‘Our partnerships and collaborations in Sharjah have been instrumental in advancing projects that not only contribute to the economy but also align with our core values at EDB. We believe in driving economic impact over profit, excelling through partnerships delivering innovative excellence, and ensuring that our initiatives have a lasting positive impact on the community and the environment.’

In his address, Mohammed Juma Al Musharrakh, CEO of Sharjah FDI Office (Invest in Sharjah), said, ‘At the Sharjah FDI Office (Invest in Sharjah), we firmly believe in the power of robust partnerships to shape Sharjah’s sustainable economic trajectory. We are committed to creating an attractive environment for business success and prosperi
ty, not only for large corporations but also for startups and SMEs. Our collaboration with Emirates Development Bank is a crucial component in supporting the growth of key industries in Sharjah, including manufacturing, healthcare, education, tourism, real estate, mobility, logistics, green technology, agritech, and human capital development. Sharjah’s diverse free zones and public-private partnerships also provide an ideal ecosystem for businesses to establish and thrive.’

‘In 2023, Sharjah attracted AED 1.8 billion in FDI, securing its position as the fifth-fastest-growing city globally in terms of attracting FDI, as per fDi Markets. This achievement underscores the emirate’s commitment to economic growth and our dedication to achieving our goals in the coming years.’

Emirates Development Bank has been providing instrumental financing support to enable industrial advancement and sustainable economic growth in Sharjah. This is further reflected in the fact that 64% of EDB’s total financing in Sharjah in th
e past three years supported the manufacturing sector and 16% supported renewables projects. This also indicates the alignment of the Bank’s financing with the national agenda for sustainable development and economic diversification.

EDB Connect – Sharjah Edition included three focused sessions which featured speakers from the UAE Ministry of Industry and Advanced Technology, Ministry of Climate Change and Environment, Ministry of Economy, Sharjah Department of Economic Development, and the Department of Agriculture and Livestock. Other participating partners Sharjah Research Technology and Innovation Park, Etihad Credit Insurance (ECI), Sharjah Entrepreneurial Center (Sheraa), Ruwad, Invest in Sharjah and the Sharjah Chamber of Commerce and Industry.

The first panel delved into strategies and initiatives from key local and federal entities for nurturing an attractive business and investment environment in Sharjah. The second panel focused on the role of strategic partnerships in driving innovation and econ
omic growth. The last session highlighted experiences of EDB customers and strategies of key entities in Sharjah to empower entrepreneurs and provide comprehensive business incubators for startups and SMEs.

The panel sessions and collaborative discussions at the forum underline Emirates Development Bank’s pivotal role in shaping the new economic narrative of Sharjah and the UAE.

Concluding the day, a special award ceremony was held recognising key stakeholders and strategic partners that work together in Sharjah.

Emirates Development Bank’s critical role in the UAE’s economic transformation is reflected in its initiatives to provide competitive, flexible and inclusive financing, foster large companies, enable SMEs growth, and support its five priority sectors. As the financial engine of these diversification efforts, EDB’s commitment to enabling innovative projects and sustainable growth strategies was a central theme throughout the discussions.

Source: Emirates News Agency

ABU DHABI: Abu Dhabi has secured its place within the top 25 maritime cities worldwide, jumping an impressive 10 spots since 2022, ranking 22, the highest jump among all cities, according to the prestigious 2024 Leading Maritime City (LMC) Report, unveiled in Singapore.

The LMC report, a bi-annual benchmarking study jointly produced by DNV and Menon Economics, assesses the performance of 50 leading maritime cities across key sectors such as shipping, finance and law, maritime technology, and port and logistics. This year marks the sixth edition of the report, providing invaluable insights for maritime administrations, industry stakeholders, and the global maritime community.

Abu Dhabi’s growth has been driven by strong gains in the “Attractiveness and Competitiveness” and ‘Enhancement in Shipping’ indicators. It also achieved impressive rankings across all other key indicators and scored favourably in terms of projected growth as a leading maritime centre of the world, continuing Abu Dhabi’s growing promine
nce in the global maritime landscape.

A major contributor to this success is Abu Dhabi Maritime, established in 2020 via an agreement between AD Ports Group and The Department of Municipalities and Transport to manage the growth and development of Abu Dhabi’s maritime domain. Abu Dhabi Maritime was committed through its dedicated efforts to positioning the emirate as a leading global maritime hub. This was reflected in Abu Dhabi entering the LMC ranking for the first time in 2022, and its outstanding ascent in overall ranking to 22nd today.

AD Ports Group has invested heavily across a number of areas which fall under the ranking criteria. Bolstering commercial and leisure maritime infrastructure, enhancing digital capabilities and augmenting the maritime regulatory framework, have contributed significantly to this success, as have initiatives such as the launch of Maritime Hub Abu Dhabi, expansion of public water transportation networks and sustainability projects.

Captain Mohamed Juma Al Shamisi, Managing
Director and Group CEO of AD Ports Group, said, ‘We are delighted to see Abu Dhabi’s remarkable progress recognised in the 2024 Leading Maritime City Report. This achievement serves as a testament to the forward-thinking approach of our wise leadership, and the dedication and hard work of Abu Dhabi Maritime alongside the maritime community. It also underscores AD Ports Group’s unwavering commitment to continued investment, innovation, and environmental responsibility in the maritime sector. Through strategic initiatives and collaborative efforts, we are confident in our efforts to further elevate Abu Dhabi’s status as a global maritime hub.’

Benjamin Dineshkar, Head of Maritime Advisory, Middle East and Africa, and co-author of the report, said, ‘Abu Dhabi has made the most remarkable progress, moving 10 places from 32 to 22. Compared to the cities that were in the top 50 for both 2022 and 2024, Abu Dhabi has achieved the biggest leap among the cities. This is a result of strategic public policies and consis
tent investment, reflected in the strong performance in many indicators and the overall LMC ranking. For Abu Dhabi to have only entered the top 50 of the Leading Maritime City Report in 2022, this is a tremendous achievement.’

Source: Emirates News Agency

ABU DHABI: The balance sheet of the Central Bank of the UAE (CBUAE) reached the AED750 billion mark at the end of last February, marking a historic milestone, as per the balance sheet report for February 2024 released today.

The report highlighted a notable 32.5 percent annual surge in the Central Bank’s general budget, reaching AED747.62 billion by the end of last February, compared to approximately AED564.25 billion in February 2023, reflecting a substantial increase of AED183.4 billion.

On a monthly basis, the central bank’s balance sheet increased by 1.8 percent or AED13 billion, compared to AED734.61 billion in January 2024.

According to the statistics, allocations of the Central Bank’s balance sheet assets included AED321.21 billion for cash and bank balances in February, approximately AED219.75 billion in investments, AED174.27 billion in deposits, AED1.83 billion in loans and advances, and AED30.56 billion in other assets.

On the liabilities and capital side, the balance sheet comprised AED318.46
billion for current and deposit accounts, around AED257 billion for Treasury bills and Islamic certificates of deposit, AED139.36 billion for issued banknotes and coins, AED16.98 billion for capital and reserves, and AED5.82 billion for other liabilities.

Source: Emirates News Agency

DUBAI: Emirates Islamic has launched Fractional Sukuk, an innovative new product catering to investors.

The exclusive offering grants customers access to international Sukuk markets with a minimum investment as low as USD 25,000.

The international Sukuk market typically requires a minimum investment of USD 200,000, posing a challenge for retail investors seeking exposure to Sukuk markets. Investors interested in accessing the Sukuk markets with smaller investment amounts will benefit from Shariah-compliant Fractional Sukuk, as this will enable them to diversify their investment portfolio and create an alternative income source.

Investors have the freedom to build customised Sukuk portfolios tailored to their investment objectives with Fractional Sukuk based on their risk appetite, desired yields, credit ratings, and other criteria.

Additionally, Fractional Sukuk investors have the flexibility to liquidate their investments by selling their holdings through Emirates Islamic, ensuring access to funds as nee
ded.

Emirates Islamic is the first Islamic bank in the region to introduce this investment class, providing investors with numerous benefits, such as diversification opportunities, allowing them to distribute risk across different Sukuk issuers, sectors, and maturity periods, thereby improving the stability and resilience of their investment portfolios.

Mohamed Al Hadi, Acting Head of Retail Banking and Wealth Management, Emirates Islamic, said: ‘We are proud to be the first Islamic bank in the region to introduce an innovative offering such as Fractional Sukuk, further cementing our position as a forward-thinking financial institution with a commitment to offering our customers with best in class, innovative Shariah compliant products and services. Our Fractional Sukuk offering aligns with this vision.’

Ebrahim Qayed, Head of Treasury and Markets at Emirates Islamic, added, ‘The Fractional Sukuk offering not only allows investors to enjoy the benefits of Sukuk ownership while managing risk, but also suppo
rts their investment goals and promotes overall financial empowerment. As a pioneering Shariah-compliant bank, we are glad to provide investors access to Regular income markets at a lower investment threshold and unlock new financial opportunities for them.’

Source: Emirates News Agency