The UAE Ministry of Finance has successfully completed its July 2026 auctions of dirham-denominated Treasury Sukuk and Treasury Bonds, raising a total of AED1.1 billion and drawing bids worth AED4.83 billion, an oversubscription of 4.4 times.
The auctions, carried out in partnership with the Central Bank of the UAE as issuing and payment agent, form part of the broader Treasury Bonds and Treasury Sukuk issuance programme for 2026. They covered two tranches, a T-Sukuk maturing in October 2027 and a T-Bond maturing in January 2031, both of which saw robust participation from primary dealers.
Pricing came in competitive and market-driven. The T-Sukuk tranche recorded a yield to maturity of 4.49 percent, while the T-Bond tranche came in at 4.48 percent. These figures translate to spreads of 24 and 4 basis points respectively above comparable US Treasuries at the time of issuance, underscoring investor appetite for UAE sovereign debt even against global benchmarks.
Officials pointed to the scale of demand as a signal of confidence in the UAE's financial sector and the broader resilience of the national economy. Both instruments are listed on Nasdaq Dubai, a move designed to widen access for investors in the secondary market.
Beyond the immediate auction results, the programme carries a longer-term purpose. It supports the development of the UAE's dirham-denominated yield curve, giving investors a reliable pricing benchmark while offering secure instruments for a diverse investor base.
The initiative also strengthens the local debt capital market and feeds into the UAE's wider investment landscape. Authorities have framed it as a building block for the country's long-term economic sustainability and growth objectives, reinforcing Dubai and Abu Dhabi's position as regional centres for capital markets activity.
News Source: Emirates News Agency
