Abu Dhabi:The Ministry of Finance (MoF), in collaboration with the Central Bank of the UAE (CBUAE), has announced the successful completion of the October 2026 auction for UAE dirham-denominated Islamic Treasury Sukuk (T-Sukuk) and Treasury Bonds (T-Bonds), issuing a total of AED1.1 billion.
According to Wam, the auctions received substantial interest from primary dealers, with total bids reaching AED4.54 billion, indicating an oversubscription rate of 4.1 times. This level of demand demonstrates the confidence investors have in the UAE's creditworthiness and its Islamic finance framework.
The auction results revealed competitive, market-driven pricing with a yield to maturity (YTM) of 4.95 percent for the T-Sukuk tranche maturing in October 2029 and 5.05 percent for the T-Bond tranche maturing in January 2031. These yields reflect tight spreads of 19 and 26 basis points, respectively, over comparable US Treasuries at the time of issuance.
Additionally, the listed T-Sukuk and T-Bonds on Nasdaq Dubai improve investor access in the secondary market. The AED T-Bond and T-Sukuk programmes are instrumental in developing the UAE's dirham-denominated yield curve, providing secure investment options for a diverse range of investors while reinforcing the local debt capital market and supporting the UAE's economic sustainability and growth objectives.
