ABU DHABI — The Ministry of Finance, in collaboration with the Central Bank of the UAE, has raised AED1.1 billion ($300 million) through its April auction of dirham-denominated Islamic Treasury sukuk.
The issuance is part of the government’s 2026 sukuk program published on the ministry’s website.
The auction drew strong demand from eight primary dealers across two tranches maturing in October 2027 and February 2033. Total bids reached AED5.2 billion, representing an oversubscription of 4.7 times.
The reopening of the 7-year sukuk maturing in February 2033 saw particularly strong demand, with a coverage ratio of five times and pricing about 10 basis points above comparable U.S. Treasury yields. The tenor builds on an inaugural issuance in February that was six times oversubscribed.
The ministry said the demand reflects investor confidence in the UAE’s credit strength and economic resilience, while also supporting the development of a dirham-denominated sovereign yield curve.
Yield to maturity was set at 3.92% for the October 2027 tranche and 4.13% for the February 2033 tranche. The spreads were 23 basis points and 10 basis points, respectively, over comparable U.S. Treasurys at the time of issuance.
The sukuk are listed on Nasdaq Dubai, supporting secondary market trading and investor access.
The Islamic Treasury sukuk program is aimed at strengthening the domestic debt market, expanding investment options and supporting long-term economic growth.