UAE advances global ranking for financial system excellence

The Ministry of Finance (MoF) announced the UAE’s commitment to implement the amendments to the Common Reporting Standard (CRS 2.0) issued by the Organisation for Economic Co-operation and Development (OECD) under the Automatic Exchange of Information (AEOI).

The CRS 2.0 will be effective on 1st January 2027, with the first exchange of information under CRS 2.0 to begin in 2028.

This step reflects the UAE’s advanced position in various global competitiveness indicators and confirms the excellence of the UAE’s financial system in terms of transparency and its adoption of the highest standards of governance. It also represents a key factor in attracting foreign investments to the UAE’s pragmatic approach to align the timeline of CRS 2.0 implementation with tax information reporting requirements under the Crypto Asset Reporting Framework (CARF).

The updated standard (CRS 2.0) develops the framework established under Federal Decree No. (48) of 2018 and Cabinet Resolution No. (93) of 2021, as it expands its scope to include electronic money, digital currencies of central banks, and certain activities related to crypto assets, and provides additional requirements for auditing and reporting, to ensure that the growth of the digital asset sector and financial innovation does not affect global tax transparency.

The updated CRS 2.0 and the CARF are a significant milestone in the UAE’s journey towards strengthening its commitment to the highest international standards of tax transparency and expanding cooperation with international organisations such as the OECD and the global financial community, thereby strengthening the UAE’s position as a leading financial hub based on good governance and international compliance.

Meanwhile  the Ministry of Finance (MoF), in its capacity as issuer, in collaboration with the Central Bank of the UAE (CBUAE) as issuing and payment agent, announced the successful completion of the October 2025 auction of UAE dirham-denominated Islamic Treasury Sukuk (T-Sukuk), with a total issuance of Dhs1.1 billion. This transaction is part of the T-Sukuk issuance programme for 2025, as published on the MoF’s official website.

The auction witnessed strong participation from all eight primary dealers for both the new 2-year tranche maturing in October 2027 and the tranche maturing in May 2030. Total bids amounted to Dhs4.57 billion, representing an oversubscription of 4.2 times. 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 3.49% for the new 2-year tranche maturing in October 2027 and 3.65% for the tranche maturing in May 2030. These yields represent a tight spread of up to 7 basis points above comparable US Treasuries at the time of issuance. Additionally, these Sukuk are listed under the UAE Treasury Islamic Sukuk Programme with Nasdaq Dubai, enhancing investor access in the secondary market.

The Islamic T-Sukuk programme plays 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.

The Ministry of Finance has signed a cooperation agreement last week with Abu Dhabi Islamic Bank (ADIB), making it the first bank to join the Ministry’s newly launched “Retail Sukuk” initiative, aiming to enable citizens and residents to invest easily and securely in UAE Government Islamic Treasury Sukuk through innovative digital platforms.

Under the agreement, individual investors in the UAE can now access and invest in Islamic Treasury Sukuk (T-Sukuk) via ADIB’s “Smart Sukuk” platform, which allows investment in fractional Sukuk in smaller denominations. The initiative supports the Ministry’s efforts to broaden the investor base and promote financial inclusion across the UAE. Through the platform, investors can start with a minimum investment of Dhs4,000, in increments of Dhs4,000, up to a maximum of Dhs28,000 per transaction, with the flexibility to make multiple transactions.

UAE nationals and residents with an Emirates ID or UAE PASS can complete their registration online, fulfil KYC requirements, and create a risk profile directly on the platform, while also viewing Sukuk terms and transaction details.

Younis Haji AlKhoori, Under-Secretary of the Ministry of Finance, said, “This agreement with Abu Dhabi Islamic Bank marks the first step in implementing the Retail Sukuk initiative, reflecting the Ministry’s commitment to advancing the leadership’s vision of economic empowerment and promoting a culture of saving and sustainable investment. Our partnership with ADIB exemplifies successful collaboration between the public and private sectors in developing innovative, government-backed financial instruments that support sustainable economic growth.”

He added, “Through this agreement, we are providing individuals with a fully digital, Sharia-compliant investment experience that is simple, secure, and designed to promote financial stability for families and the wider community.”

WAM