By Staff Reporter

DUBAI- The UAE Ministry of Finance has raised AED1.1 billion through its latest Treasury Bond auction, attracting strong interest from investors and underscoring confidence in the country’s financial stability and economic outlook.

Held in partnership with the Central Bank of the UAE, which acted as the issuing and payment agent, the May 2026 auction recorded total bids worth AED4.74 billion — making the offering oversubscribed by 4.3 times.

The auction featured two bond tranches with maturities set for September 2027 and January 2031. Both issuances received significant participation from primary dealers and institutional investors.

The Ministry priced the bonds at competitive yields of 4.03 percent for the 2027 tranche and 4.30 percent for the 2031 tranche. Pricing spreads stood at up to 14 basis points above equivalent US Treasury securities during the issuance period.

The bonds are listed on Nasdaq Dubai, allowing broader participation and trading opportunities within the secondary market.

This marks the third successful Treasury Bond issuance since the beginning of the regional conflict, with the Ministry having now raised a total of AED3.3 billion across all three auctions. Combined investor demand has exceeded AED14.5 billion, while spreads have ranged between 6 and 23 basis points across maturities spanning 18 months to seven years.

Officials said the strong appetite for the bonds reflects investor trust in the resilience of the UAE economy, as well as confidence in the nation’s financial and banking sectors.

The UAE’s dirham-denominated Treasury Bond and Treasury Sukuk programmes are designed to strengthen the local debt capital market and help establish a reliable dirham yield curve. The initiatives also support the country’s broader goals of sustainable economic growth, investment market development, and long-term fiscal stability.

Source: Emirates News Agency (WAM)