ABU DHABI, 25th September 2025 (WAM) – The UAE Ministry of Finance (MoF), acting as the issuer, has announced the successful results of its September auction for Islamic Treasury Sukuk (T-Sukuk), denominated in UAE Dirhams. The auction, conducted in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and payment agent, concluded with a total issuance of AED 1.1 billion.
This issuance is a key component of the 2025 T-Sukuk programme outlined on the Ministry of Finance’s website.
The auction attracted significant interest, with strong bidding activity from the eight appointed primary dealers for the two tranches maturing in August 2028 and May 2030. The total value of bids received reached AED 5.1 billion, resulting in an oversubscription rate of 4.6 times. This high level of demand underscores the investment community’s strong confidence in the UAE’s credit standing and its robust Islamic finance sector.
The pricing achieved was highly competitive, with the Yield to Maturity (YTM) settling at 3.64% for the 2028 tranche and 3.72% for the 2030 tranche. This pricing reflects a narrow spread of just up to 5 basis points over equivalent US Treasury bonds at the time of the auction.
In line with the programme’s structure, the Sukuk will be listed on Nasdaq Dubai under the UAE Treasury Islamic Sukuk Programme, ensuring transparency and ease of trading for investors in the secondary market.
The Islamic T-Sukuk programme is a strategic initiative aimed at strengthening the UAE’s local currency yield curve. It provides a safe and Sharia-compliant investment avenue for various investors, aids in the growth of the domestic debt capital market, and supports the nation’s broader objectives for economic sustainability and development.