Sukuk & Bonds
A bond is a debt security through which you lend money to a borrower, which could be a corporation, municipality or government, for a specified amount of time at an agreed-upon interest rate. It can be thought of as an “I-owe-you.” Once the bond reaches maturity, the issuer must repay the principal.
Similarly, a Sukuk is an Islamic or Sharia-compliant bond.
We offer a variety of conventional bonds including Floating Rate Notes (FRNs) and Medium-term Notes (MTNs).
Benefits of Sukuk and Bonds for Investors
Bonds are a popular option for many personal and institutional investment portfolios, offering a number of advantages that include:
Relatively Low Risk
Lower risk than stocks, as fixed assets are less sensitive to macroeconomic shifts. You are also guaranteed repayment of the principal, and in cases of bankruptcy, debt holders are paid ahead of shareholders.
Income Generation
They provide a predictable fixed income stream at regular intervals through coupon payments.
Diversification
Bonds typically have an inverse relationship with stocks, which can help create a balanced portfolio and offset exposure to volatile stock holdings and cyclical asset classes.
Capital Preservation
If held to maturity, you get back the entire principal, which helps preserve capital while investing.
Higher Returns
The yield can be particularly attractive during periods of declining or low interest rates.
Trade Sukuk and Bonds 3 Easy Steps
We make trading Sukuk and Bonds easy for you. No matter your nationality or which country you are based in, you can apply to trade both DFM and Nasdaq Dubai listed securities as an individual or institution in a few simple steps.Apply for a DFM Investor Number (NIN)
Appoint a Broker
You may first want to contact the brokers, as each one offers different products and services. View Licensed Brokers
Start Trading
View and track your portfolio on the DFM app or through DFM eServices.