UAE issues first seven-year Islamic treasury Sukuk worth Dh550 million
New tranche six times oversubscribed as demand signals investor confidence
Dubai: The UAE has issued its first seven-year Islamic Treasury Sukuk valued at Dh550 million, marking the longest maturity under the programme to date, the Ministry of Finance said on Sunday.
The tranche attracted bids of around Dh3.1 billion, nearly six times the size of the issuance, underscoring strong investor appetite and confidence in the country’s Islamic finance sector and broader economy.
The seven-year sukuk formed part of a February auction totalling Dh1.1 billion under the UAE’s 2026 Islamic Treasury Sukuk programme, conducted by the Ministry of Finance as issuer in cooperation with the Central Bank of the UAE as issuing and paying agent.
The auction, which included tranches maturing in May 2030 and February 2033, drew total bids of Dh5.88 billion, about 5.3 times the issuance size. The seven-year tranche alone was nearly six times oversubscribed.
The sukuk were priced competitively at yields to maturity of 3.53 per cent for the May 2030 tranche and 3.779 per cent for the February 2033 tranche, below comparable US Treasury yields at the time of issuance.
Listed on Nasdaq Dubai, the sukuk aim to deepen the dirham-denominated yield curve, provide secure investment alternatives and strengthen the domestic debt capital market, supporting sustainable economic growth.
