In the role of issuer, and under the cooperation of the Central Bank of the UAE (CBUAE) as issuing and payment agent, the Ministry of Finance (MoF) declared the successful completion of the January 2026 auctions of UAE dirham-denominated Treasury Islamic Sukuk (T-Sukuk) and Treasury Bonds (T-Bonds), with a total issuance amount of AED1.1 billion.
As per the data published on MoF’s official website, these transactions are the initial issuances to be made on the T-Sukuk and T-Bonds programmes in the calendar year 2026.
This new T-Bonds issuance is also the first new tranche to be issued under the programme since March 2023, to support the building of the AED yield curve and leverage depth and liquidity in the secondary market.
The auctions were characterized by a high turnout by the primary dealers in the T-Sukuk that were in October 2027 and the new T-Bonds tranche that was to mature in January 2031. The total number of bids was AED5.15 billion, which is an oversubscription of 4.7 times.
This strong demand indicates that investors trust the financial sector of the UAE and the stability of the national economy. As noted by the outcomes of the auction, competitive and market-driven pricing with a YTM of 3.66 percent and 3.90 percent for the T-Sukuk tranche and the T-Bond tranche, respectively.
Such yields indicate a narrow margin of up to 9 basis points over similar US Treasuries when they are issued. The T-Bonds and T-Sukuks are also traded on Nasdaq Dubai, and this widens access for investors to the secondary market.
However, these issues, the outstanding under the programmes have risen to AED28 billion with maturities between 2 years and 5years.
The AED T-Sukuk and T-Bond programmes are important in helping to develop the dirham-denominated yield curve of the UAE and provide secure investment instruments to various range of investors.
It also strengthens the debt capital market locally and aids in the creation of the wider investment environment, as well as the long-term economic sustainability and growth agenda of the UAE.
