The Ministry of Finance (MoF), acting as issuer in coordination with the Central Bank of the UAE (CBUAE) as issuing and payment agent, announced the successful completion of the September 2025 auction of UAE dirham-denominated Islamic Treasury Sukuk (T-Sukuk), with a total issuance of AED1.1 billion.
This transaction forms part of the T-Sukuk issuance programme for 2025, as published on the MoF’s official website.
The auction saw strong participation from the eight primary dealers across two tranches maturing in August 2028 and May 2030. Total bids reached AED5.1 billion, representing an oversubscription of 4.6 times. This robust demand reflects investors’ confidence in the UAE’s creditworthiness and Islamic finance framework.
The auction results demonstrated competitive, market-driven pricing, with a yield to maturity of 3.64 percent for the August 2028 tranche and 3.72 percent for the May 2030 tranche. These yields represent a tight spread of up to 5 basis points above comparable US Treasuries at the time of issuance.
Additionally, these Sukuk are listed under the UAE Treasury Islamic Sukuk Programme on Nasdaq Dubai, providing enhanced access for investors in the secondary market.
The Islamic T-Sukuk programme plays a key role in supporting the development of the UAE’s dirham-denominated yield curve, offering secure investment instruments for a broad range of investors. Moreover, it strengthens the local debt capital market, contributes to the growth of the wider investment landscape, and supports the UAE’s long-term economic sustainability and development objectives.
(Inputs from WAM)
