The UAE Ministry of Finance has launched its first-ever seven year UAE dirham denominated Islamic Treasury Sukuk, marking a significant step in expanding the country’s domestic debt market and strengthening its Islamic finance ecosystem.
Valued at AED550 million, the new issuance represents the longest tenor introduced under the programme so far and drew strong investor demand, highlighting continued confidence in the UAE’s economic stability.
Issued by the Ministry of Finance in collaboration with the Central Bank of the UAE as issuing and payment agent, the tranche forms part of the Islamic Treasury Sukuk Programme for 2026. The offering attracted bids worth approximately AED3.1 billion, nearly six times the issuance size.
The announcement followed the successful completion of the February auction, which recorded a total issuance of AED1.1 billion across two maturities, May 2030 and February 2033. Participation from eight primary dealers generated total bids of AED5.88 billion, resulting in an overall oversubscription ratio of 5.3 times.
Market driven pricing delivered competitive yields, with a yield to maturity of 3.53 percent for the May 2030 tranche and 3.779 percent for the February 2033 tranche. Both were priced below comparable US Treasury levels at the time of issuance, reinforcing the UAE’s strong credit profile.
The Sukuk are listed on Nasdaq Dubai, improving liquidity and investor access in the secondary market. Officials said the programme plays a key role in developing the UAE’s dirham denominated yield curve while providing secure investment instruments and supporting the growth of the local debt capital market.
The issuance aligns with broader national objectives to deepen financial markets, strengthen Islamic finance infrastructure, and support long term economic sustainability.
News Source: Emirates News Agency
