Abu Dhabi, April 8, 2025 – Abu Dhabi Islamic Bank has officially launched Smart Sukuk, a digital platform that allows customers to invest in fractional sukuk directly through its mobile app. This marks a regional first, enabling investments from as little as USD 1,000 — a sharp reduction from the traditional USD 200,000 minimum typically required to access sukuk markets.
Lowering the Barrier to Entry
Sukuk, often referred to as Islamic bonds, are asset-based investment instruments that comply with Sharia principles. They have long been favored by institutional and high-net-worth investors for their relatively stable returns. However, their high entry point has historically excluded retail participation. By introducing fractional ownership, the Smart Sukuk platform democratizes access to this asset class. It enables individuals to invest smaller amounts in sukuk portfolios, offering the same compliance and fixed-income benefits previously reserved for larger investors.
Key Features of the Platform
- Digital Onboarding – Fast and paperless setup with built-in KYC verification.
- Risk Profiling – Tools that align investment options with individual investor profiles.
- Sharia-Compliant Offerings – Access to vetted sukuk instruments with varying risk and maturity profiles.
- Fractional Trading – Buy or sell portions of sukuk without large capital commitments.
- No Lock-In Periods – Withdraw or adjust investments without term restrictions.
- Full Transparency – Real-time access to documentation, certifications, and performance data.
- Income Distribution – Profits from sukuk assets distributed proportionally to fractional holders.
Supporting Financial Innovation
The platform’s rollout is taking place within a regulatory sandbox, ensuring that new technologies are tested under controlled conditions. It aims to support the safe deployment of fractional sukuk while maintaining robust compliance and investor protections. The initiative, developed in collaboration with national regulatory bodies including the Regulations Lab and the Securities and Commodities Authority, was first approved for testing in November 2024. It forms part of a wider effort to promote financial innovation and inclusion across the UAE, in line with national digital transformation goals.
Market Outlook
Global sukuk issuance reached approximately USD 180 billion in 2024, with total outstanding issuance expected to approach USD 1 trillion within the next few years. Demand for Sharia-compliant and ethical investment vehicles continues to grow, driven by both Muslim and non-Muslim investors seeking values-based financial alternatives. By lowering the investment threshold and offering a mobile-first user experience, ADIB’s Smart Sukuk positions the UAE as a frontrunner in Islamic fintech. The platform expands financial access, supports capital market transparency, and empowers a broader range of investors to participate in the sukuk market.
