The UAE Ministry of Finance has successfully completed its first treasury auctions of 2026, issuing AED1.1 billion in dirham-denominated Islamic Sukuk and Treasury Bonds, underscoring strong investor confidence in the country’s financial strength and economic resilience.
The January 2026 auctions were conducted by the Ministry of Finance as issuer, in collaboration with the Central Bank of the UAE acting as issuing and payment agent. They mark the first issuances under the T-Sukuk and T-Bonds programmes for the 2026 calendar year, in line with the ministry’s published issuance calendar.
The T-Bonds offering is particularly notable, as it represents the first new tranche under the programme since March 2023. Officials said the issuance supports the continued development of the UAE dirham yield curve while enhancing depth and liquidity in the secondary debt market.
Strong demand was recorded from primary dealers for both instruments. The T-Sukuk tranche, maturing in October 2027, and the new T-Bonds tranche, maturing in January 2031, attracted total bids of AED5.15 billion, translating into an oversubscription rate of 4.7 times.
Auction results reflected competitive market-driven pricing, with yields to maturity of 3.66 percent for the T-Sukuk and 3.90 percent for the T-Bonds. The yields were priced at a narrow spread of up to 9 basis points above comparable US Treasuries at the time of issuance. Both instruments are listed on Nasdaq Dubai to support secondary market access.
Following the latest auctions, total outstanding issuance under the programmes has reached AED28 billion across maturities ranging from two to five years, reinforcing the UAE’s local debt capital market and long-term economic objectives.
News Source: Emirates News Agency
