By Staff Reporter
The UAE Ministry of Finance has issued its first seven-year dirham-denominated Islamic Treasury Sukuk, a landmark move to expand the domestic debt market and bolster the nation’s Islamic finance ecosystem.
Valued at AED 550 million, the tranche represents the longest tenor issued under the programme to date and attracted robust investor interest, with bids totaling approximately AED 3.1 billion—nearly six times the issuance size.
The Sukuk, issued in partnership with the Central Bank of the UAE as issuing and payment agent, is part of the 2026 Islamic Treasury Sukuk Programme. This follows a successful February auction where AED 1.1 billion was raised across two maturities—May 2030 and February 2033—drawing bids worth AED 5.88 billion from eight primary dealers, resulting in a 5.3x oversubscription.
Market-driven pricing delivered competitive yields, with 3.53% for May 2030 and 3.779% for February 2033, both below comparable US Treasury yields at the time of issuance, underscoring the UAE’s strong credit standing.
Listed on Nasdaq Dubai, the Sukuk enhances liquidity and broadens investor access in the secondary market. Officials noted the programme is a cornerstone in developing the UAE’s dirham-denominated yield curve, providing secure investment instruments while supporting growth in the local debt capital market.
The issuance aligns with national objectives to deepen financial markets, strengthen Islamic finance infrastructure, and advance long-term economic sustainability.
Source: Emirates News Agency
