The United Arab Emirates has issued its first seven-year Islamic Treasury Sukuk valued at Dh550 million, marking the longest maturity offered under the government’s Islamic Treasury Sukuk programme to date, the Ministry of Finance announced on Sunday. The milestone reflects the country’s ongoing efforts to strengthen its Islamic finance framework and expand its domestic debt market.
The seven-year tranche attracted bids worth approximately Dh3.1 billion, nearly six times the size of the issuance, underscoring strong investor appetite and confidence in the UAE’s Islamic finance sector and broader economic outlook. The issuance formed part of a February auction totalling Dh1.1 billion under the UAE’s 2026 Islamic Treasury Sukuk programme, conducted by the Ministry of Finance in cooperation with the Central Bank of the UAE, which acted as the issuing and paying agent.
Total demand for the February auction reached Dh5.88 billion, about 5.3 times the issuance size. The offering included tranches maturing in May 2030 and February 2033, with the seven-year February 2033 tranche alone nearly six times oversubscribed, highlighting sustained investor confidence.
The sukuk were priced competitively, with yields to maturity set at 3.53 per cent for the May 2030 tranche and 3.779 per cent for the February 2033 tranche. Both tranches were priced below comparable US Treasury yields at the time of issuance, reinforcing the country’s strong credit profile and fiscal stability.
Listed on Nasdaq Dubai, the sukuk aim to deepen the dirham-denominated yield curve, provide secure investment alternatives, and further develop the domestic debt capital market. The issuance also supports the UAE’s broader strategy to promote sustainable economic growth and strengthen its position as a leading hub for Islamic finance.