The Ministry of Finance has closed its final Islamic Treasury Sukuk auction for 2025 with a total issuance of AED1.1 billion, marking another year of robust demand for the UAE’s dirham-denominated sovereign instruments.
According to the Ministry, the November auction was carried out in collaboration with the Central Bank of the UAE and drew strong interest from all eight primary dealers. Bids reached AED5.48 billion across two tranches maturing in October 2027 and May 2030, resulting in an oversubscription of five times.
The auction delivered competitive pricing, with yields to maturity of 3.52 percent for the 2027 tranche and 3.63 percent for the 2030 tranche. These levels came within a tight spread of up to 5 basis points above comparable US Treasuries, underscoring confidence in the UAE’s credit strength and its Islamic finance framework.
All issued Sukuk are listed on Nasdaq Dubai under the UAE Treasury Islamic Sukuk Programme, ensuring broad investor access in the secondary market.
The Ministry conducted nine Sukuk auctions throughout 2025, issuing a total of AED9.9 billion with maturities ranging from two to five years. Annual bids reached AED53.8 billion, maintaining an average oversubscription of 5.4 times and achieving an average pricing spread of just 3 basis points above US Treasuries.
Officials noted that regular issuance has helped build a reliable dirham yield curve, now visible on Bloomberg, offering greater transparency for investors and a benchmark for domestic issuers. The T-Sukuk programme continues to support the development of the local debt capital market and contributes to the UAE’s long-term economic growth objectives.
News Source: Emirates News Agency
