The Ministry of Finance (MoF), in its capacity as the issuer and in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and payment agent, successfully completed the auction of UAE Dirham-denominated Islamic treasury sukuk (T-sukuk) amounting to AED1.1 billion. This issuance forms part of the UAE’s T-Sukuk issuance program for the year 2025.
The auction attracted robust demand from eight primary dealers across both tranches maturing in May 2027 and September 2029. The total bids received reached AED6.12 billion ($1.67 billion), reflecting an oversubscription rate of 5.6 times, underscoring the strong confidence of investors in the UAE’s creditworthiness and Islamic finance framework.
The auction results highlighted competitive, market-driven pricing with a Yield to Maturity (YTM) of 3.83 percent for the May 2027 tranche and 3.93 percent for the September 2029 tranche. These yields represent a tight spread of 5 and flat basis points, respectively, above comparable U.S. Treasuries at the time of issuance.
The Islamic T-sukuk program plays a vital role in supporting the development of the UAE’s Dirham-denominated yield curve, offering secure investment instruments for a wide range of investors. Furthermore, it reinforces the local debt capital market, contributes to the development of the broader investment landscape and supports the UAE’s long-term economic sustainability and growth objectives.
In February, the UAE’s T-Sukuk auction denominated in UAE dirhams amounted to AED1.1 billion. The auction also witnessed a strong demand from the eight primary dealers for both tranches maturing in August 2028 and September 2029, of the Islamic T-Sukuk, with bids received worth AED7.1 billion and an oversubscription by 6.5 times.
Meanwhile, the January auction recorded strong demand for both tranches maturing in May 2027 and September 2029 of the Islamic T-Sukuk, with bids received worth AED6.91 billion and an oversubscription by 6.3 times.
