The UAE's Ministry of Finance has launched its first sovereign retail sukuk programme, offering individual investors access to government-backed Islamic investment instruments through a public subscription process.

The shariah-compliant programme will allow UAE residents to invest in sovereign sukuk with a minimum subscription of AED1,000 ($272), said the ministry in a statement.

The sukuk will be offered through an IPO-style subscription framework and are expected to be listed on Nasdaq Dubai after issuance, allowing investors to trade the securities on the secondary market.

The ministry said details of the first issuance, including the profit rate, tenor and subscription period, would be announced next week.

Unveiling the programme, Minister of State for Financial Affairs Mohamed bin Hadi Al Hussaini said the programme is aimed at expanding public participation in government investment instruments and promoting saving and long-term investment among individuals and families.

The initiative forms part of the government's efforts to deepen local capital markets and broaden access to investment products while supporting financial inclusion, the ministry said.

Emirates NBD has been appointed lead receiving bank for the programme, while Emirates Islamic Bank, Abu Dhabi Islamic Bank, Ajman Bank and Mashreq Bank will act as receiving banks. Investors will be able to subscribe through participating banks' digital platforms and dedicated channels.

Nasdaq Dubai will act as the central securities depository and provide settlement services for the sukuk.

The UAE government has expanded its domestic debt market in recent years as it seeks to develop local capital markets and diversify funding sources.-TradeArabia News Service