The UAE Ministry of Finance (MoF), in its capacity as issuer and in collaboration with the Central Bank of the UAE (CBUAE) as issuing and payment agent, has launched the first-ever 7-year tranche of UAE dirham-denominated Islamic Treasury Sukuk (T-Sukuk) valued at $149.74 million (AED550 million).
This marks the longest tenor issued under the programme to date, underscoring the strategic direction to extend and deepen the UAE dirham yield curve.
The new tranche attracted strong demand of approximately $843.84 million (AED3.1 billion), nearly six times the issuance size, reflecting investors’ confidence in the resilience of the national economy and the strength of the Islamic finance sector.
The issuance forms part of the MoF’s announcement of the successful completion of the February auction of UAE dirham-denominated Islamic Treasury Sukuk, with a total issuance of $299.48 million (AED1.1 billion). The issuance is part of the Islamic Treasury Sukuk Programme for 2026, as published on the Ministry’s official website.
The auction saw strong participation from eight primary dealers across both tranches maturing in May 2030 and February 2033. Total bids reached $1.6 billion (AED5.88 billion), representing an oversubscription ratio of 5.3 times, with the 7-year tranche oversubscribed nearly six times. The solid demand highlights investor confidence in the UAE’s creditworthiness and Islamic finance framework.
The auction achieved competitive, market-driven pricing, with a YTM of 3.53 percent for the May 2030 tranche and 3.779 percent for the February 2033 tranche, priced below par compared to US Treasuries at the time of issuance. The Sukuk are listed under the UAE Treasury Islamic Sukuk Programme on Nasdaq Dubai, enhancing investor access in the secondary market.
The Islamic T-Sukuk program continues to support the development of the UAE’s dirham-denominated yield curve, providing secure investment instruments for a broad range of investors. It also strengthens the local debt capital market, contributes to the wider investment landscape, and supports the UAE’s long-term economic sustainability and growth objectives.
