UAE's Treasury Bonds and Islamic Sukuk Programmes Achieve AED 25 Billion Milestone

H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai and Minister of Finance, has highlighted the success of the UAE's Government Treasury Bonds and Dirham-denominated Islamic Treasury Sukuk programmes, emphasizing their role in bolstering the country's status as a prime investment destination.

Since their launch in 2022, the programmes have collectively issued AED 25 billion, comprising AED 11.2 billion in Treasury Bonds and AED 13.8 billion in Sukuk.

Sheikh Maktoum stated,

“This success showcases our strong creditworthiness and economic capabilities, enhancing sustainable growth and investment alternatives in the UAE.”

The Ministry of Finance reported that as of August 2024, the total outstanding public debt for both programmes reached AED 20.15 billion, following the settlement of AED 4.85 billion in two-year bonds in May. The UAE has also secured a sovereign credit rating of AA- from Fitch Ratings, the highest in the region, underscoring its financial stability.

The Treasury Bonds Programme, initiated with the Central Bank, has seen impressive demand, with initial auctions witnessing bids exceeding subscription sizes by up to 6.5 times. The Islamic Sukuk Programme has mirrored this success, with recent auctions attracting bids that exceeded subscription sizes significantly.

These initiatives not only diversify funding sources but also enhance the local financial market, providing secure investment alternatives for both local and international investors. The UAE continues to strengthen its financial sector through transformative projects and partnerships, ensuring readiness for future economic challenges.

News Source: Emirates News Agency