The UAE Ministry of Finance, in partnership with the Central Bank of the UAE, successfully raised AED 1.1 billion through its April 2026 Islamic Treasury Sukuk auction, drawing total bids of AED 5.20 billion and an oversubscription rate of 4.7 times.
The auction covered two tranches: a shorter-dated sukuk maturing in October 2027 and a second tap on the ministry's 7-year issuance maturing in February 2033. Eight primary dealers participated across both, reflecting broad institutional appetite for UAE sovereign debt.
The 7-year tranche stood out, attracting a coverage ratio of five times and pricing just 10 basis points above US Treasury yields. That follows the February 2026 debut of this tenor, which was six times oversubscribed and priced below comparable US Treasuries — a benchmark the April auction came close to matching.
Yields were determined at 3.92 percent for the October 2027 tranche and 4.13 percent for the February 2033 tranche, with competitive spreads of 23 and 10 basis points above US Treasuries respectively.
The auction forms part of the ministry's scheduled annual T-Sukuk issuance programme for 2026 and contributes to building out a comprehensive dirham-denominated sovereign yield curve. The instruments are listed under the UAE Treasury Islamic Sukuk Programme on Nasdaq Dubai, giving investors access to the secondary market.
Officials say the programme supports the broader development of the UAE's local debt capital market while offering secure, sharia-compliant investment options to a wide investor base. The strong demand seen across successive auctions points to sustained confidence in the UAE's credit standing and its long-term economic fundamentals.
News Source: Emirates News Agency
