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, announced the success of the April 2026 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 scheduled annual issuance programme for 2026, as published on the MoF’s official website.
The auction witnessed strong participation from the eight primary dealers across both tranches maturing in October 2027 and second tap on its 7-year T-Sukuk issuance maturing in February 2033.
Total bids amounted to Dhs5.20 billion, representing an oversubscription of 4.7 times. This robust demand reflects investors’ continued confidence in the UAE's creditworthiness and resilience.
The additional issuance of 7-year Treasury sukuk also attracted strong demand, achieving a coverage ratio of 5 times and pricing at just 10 basis points above US Treasury yields. This builds on the success of the inaugural issuance for this tenor in February 2026, which was 6 times oversubscribed and priced below comparable US Treasury yields.
This exceptional appetite for the 7-year tenor underscores the Ministry’s success in developing a comprehensive sovereign yield curve in UAE dirhams.
The auction results highlighted competitive, market-driven pricing with a Yield to Maturity (YTM) of 3.92 percent for the October 2027 tranche and 4.13 percent for the February 2033 tranche. These yields represent a competitive spread of 23 bps for the shorter tenor tranche maturing October 2027 and a tight spread of 10 bps for the 7-year maturing Feb 2033 tranche, 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. Furthermore, it reinforces the local debt capital market, contributes to the development of the broader investment landscape, and supports the UAE’s long-term economic sustainability and growth objectives.
WAM