UAE's treasury Sukuk & Bonds auction attracts bids worth $1.24bn UAE’s October 2026 auction of dirham-denominated Islamic Treasury Sukuk (T-Sukuk) and Treasury Bonds (T-Bonds) fetched AED1.1 billion, with total bids amounting to AED4.54 billion ($1.24 billion), an oversubscription of 4.1 times.

This was announced by the 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, an Emirates News Agency (WAM) report said.

The transaction is part of the T-Sukuk issuance programme for 2026, as published on the MoF’s official website.

Strong participation

The auctions witnessed strong participation from the primary dealers for the T-Sukuk maturing in October 2029 and the T-Bonds tranche maturing in January 2031. This robust demand reflects investors’ confidence in the UAE's creditworthiness and Islamic finance framework.

The auction results highlighted competitive, market-driven pricing with a YTM of 4.95% for the new T-Sukuk tranche maturing in October 2029 and 5.05% for the T-Bond tranche maturing in January 2031. These yields represent tight spreads of 19 and 26 to basis points, respectively, above comparable US Treasuries at the time of issuance.

Additionally, the T-Sukuk & T-Bonds are listed on Nasdaq Dubai, enhancing investor access in the secondary market.

The AED T-Bond and T-Sukuk programmes play a vital role in supporting the development of the UAE’s dirham-denominated yield curve, offering secure investment instruments for a wide range of investors. Furthermore, they reinforce the local debt capital market, contribute to the development of the broader investment landscape, and support the UAE’s long-term economic sustainability and growth objectives.—TradeArabia News Service