Yield to maturity ( YTM ) of 3.779% for the 7-year tranche maturing in February 2033, priced lower than U.S. Treasury yields of similar maturities at the time of issuance.

Abu Dhabi, United Arab Emirates – The Ministry of Finance, as the issuer, and in cooperation with the Central Bank of the UAE, as the issuing and payment agent, announced the launch of the first tranche of Islamic Treasury Sukuk ( T-Sukuk ) with a seven-year term of AED 550 million, the longest maturity period to be issued under the program so far, in a move that reflects the strategic direction to extend and deepen the yield curve of the UAE dirham. The new tranche attracted strong demand of approximately AED 3.1 billion, nearly six times the size of the issuance, which confirms investors’ confidence in the strength of the national economy and the strength of the Islamic finance sector.

This came as part of the Ministry of Finance’s announcement of the success of the UAE dirham-denominated Islamic treasury bond auction for February, with a total value of AED 1.1 billion, within the framework of the 2026 Islamic treasury bond program, as published on the Ministry’s official website.

The auction also witnessed strong demand from the eight primary distributors of the two tranches maturing in May 2030 and February 2033, with the total value of bids submitted reaching AED 5.88 billion, equivalent to about 5.3 times the issue size (about 6 times the issue size for the new seven-year tranche). This high demand reflects investors’ confidence in the strength of the Islamic finance sector and the robustness of the national economy.

The auction results demonstrated competitive, market-driven pricing, achieving a Yield to Maturity ( YTM ) of 3.53 % for the tranche maturing in May 2030 and 3.779 % for the tranche maturing in February 2033. These prices were lower than the yields on US Treasury bonds with similar maturities at the time of issuance. Furthermore, these sukuk are listed under the UAE's Islamic Treasury Sukuk Programme on Nasdaq Dubai, enhancing their accessibility to investors in the secondary market.

It is worth noting that Islamic treasury bonds in local currency are building a yield curve denominated in UAE dirhams, and provide safe investment alternatives for investors, which contributes to enhancing the competitiveness of the local debt capital market, improving the investment environment, and supporting the sustainability of economic growth.

For more information, please visit the website: https://mof.gov.ae/federal-debt-management-office-ar /

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