The Ministry of Finance (United Arab Emirates) has reported strong investor demand for its first seven-year Islamic Treasury Sukuk (T-Sukuk), issued in February. The AED 550 million (about US$149.8 million) tranche was oversubscribed nearly six times, attracting bids worth approximately AED 3.1 billion. Officials said the high demand reflects investor confidence in the UAE’s economy and the strength of its Islamic finance sector.
The sukuk was issued in partnership with the Central Bank of the United Arab Emirates, which served as the issuing and payment agent. According to the ministry, this issuance represents the longest tenor bond under its Islamic Treasury Sukuk programme so far and highlights the government’s efforts to extend and deepen the UAE dirham yield curve. The seven-year bond carries a yield to maturity (YTM) of 3.779%.
The remainder of the AED 1.1 billion (approximately US$229.5 million) sukuk auctioned in February was issued as a tranche maturing in May 2030, offering a 3.53% yield to maturity. Together, the issuances form part of the UAE’s broader strategy to develop its domestic debt market.
Investor participation remained strong throughout the auction. Total bids reached AED 5.88 billion (US$1.6 billion) from eight primary dealers, resulting in an oversubscription ratio of about 5.3 times for the February issuance.
The sukuk are listed on Nasdaq Dubai under the UAE’s Islamic Treasury Sukuk Programme. The Ministry of Finance stated that the programme helps strengthen the local debt capital market, expand investment opportunities, and support the country’s long-term economic sustainability and growth objectives.