The Ministry of Finance of the UAE, as the issuer, in cooperation with the Central Bank of the UAE as the issuing and paying agent, announced the launch of the first tranche of Islamic Treasury Sukuk (T-Sukuk) for seven years, valued at 550 million dirhams. This is the longest ten issued within the program to date, reflecting a strategic move to extend and deepen the UAE dirham yield curve. The new tranche attracted strong bids totaling approximately 3.1 billion dirhams, nearly six times the issue size, confirming investor confidence in the resilience of the national economy and the strength of the Islamic finance sector. This was part of the Ministry of Finance's announcement of a successful auction of UAE dirham-denominated Islamic Treasury Sukuk for February, with a total value of 1.1 billion dirhams, as part of the 2026 Islamic Treasury Sukuk program. The auction also saw strong demand from the eight primary distributors for the two tranches maturing in May 2030 and February 2033. The total value of bids submitted was 5.88 billion dirhams, equivalent to about 5.3 times the issue size (nearly 6 times for the new seven-year tranche). The auction results showed competitive pricing based on market mechanisms, achieving a yield to maturity (YTM) of 3.53% for the tranche maturing in May 2030 and 3.779% for the tranche maturing in February 2033. At the time of issuance, these yields were lower than those of US Treasury bonds with similar maturities. These securities are listed on the Dubai Nasdaq under the UAE's Islamic Treasury Sukuk program, enhancing their accessibility to investors in the secondary market. Islamic Treasury Sukuk in the local currency help build a UAE dirham-denominated yield curve and offer investors safe alternative investment opportunities, thereby boosting the competitiveness of the local capital market debt, improving the investment climate, and supporting sustainable economic growth.
