The Ministry of Finance (MoF), in coordination with the Central Bank of the UAE (CBUAE) acting as issuing and payment agent, has successfully concluded the May 2025 auction of UAE Dirham-denominated Islamic Treasury Sukuk (T-Sukuk), raising AED 1.1 billion. This auction is part of the T-Sukuk issuance programme for 2025, as outlined on the Ministry’s official website.
The auction garnered strong interest from eight primary dealers, covering both the reopening of the May 2027 tranche and the newly issued 5-year tranche maturing in May 2030. Total bids reached AED 6.93 billion, reflecting an oversubscription of 6.3 times and highlighting investor confidence in the UAE’s robust credit profile and its commitment to Islamic finance principles.
Yields remained competitive, with the May 2027 tranche offering a Yield to Maturity (YTM) of 3.99% and the May 2030 tranche at 4.06%. These figures represent tight spreads of 2 basis points and flat, respectively, over comparable U.S. Treasury securities at the time of issuance.
The Islamic T-Sukuk programme continues to play a pivotal role in shaping the UAE’s dirham-denominated yield curve, providing secure, Sharia-compliant investment options. It also bolsters the domestic debt capital market and supports the UAE’s broader goals for long-term economic development and financial market diversification.- WAM
