UAE Treasury Sukuk and bond auction draws Dh4.54 billion in bids
By Business & Property Desk1 min read
The Ministry of Finance, acting as issuer together with the Central Bank of the UAE as issuing and payment agent, has announced the successful conclusion of the October 2026 auction for dirham-denominated Islamic Treasury Sukuk and Treasury Bonds. The total issuance amount reached Dh1.1 billion.
The sale forms part of the T-Sukuk issuance programme for 2026, details of which are available on the ministry’s official website.
Strong participation from primary dealers
The auction attracted heavy interest from primary dealers for the T-Sukuk tranche maturing in October 2029 and the T-Bond tranche maturing in January 2031. Total bids submitted amounted to Dh4.54 billion, representing an oversubscription rate of 4.1 times. The strong demand signals investor confidence in the UAE’s creditworthiness and its Islamic finance framework.
Competitive yields and tight spreads
The results showed market-driven pricing with yields of 4.95 percent for the new T-Sukuk tranche maturing in October 2029 and 5.05 percent for the T-Bond tranche maturing in January 2031. These yields represent tight spreads of 19 and 26 basis points, respectively, above comparable US Treasury bonds at the time of issuance.
Both the T-Sukuk and T-Bonds are listed on Nasdaq Dubai, which improves investor access in the secondary market.
The AED T-Bond and T-Sukuk programmes are designed to support the development of the UAE’s dirham-denominated yield curve, offering secure investment options for a broad range of investors. They also strengthen the local debt capital market, contribute to the wider investment environment, and support the country’s long-term economic sustainability and growth goals.
