UAE: AED 5.48 Billion in Tendered Bids in November

Central Bank of the UAE 

                                                      

UAE: AED 5.48 Billion in Tendered Bids in November

The Ministry of Finance, as the issuer, and in cooperation with the Central Bank of the UAE, as the issuing and payment agent, announced the successful auction of AED 1.1 billion in UAE dirham-denominated Islamic treasury sukuk (T-Sukuk) for November. This auction is part of the 2025 Islamic treasury sukuk program, as published on the Ministry's official website.

The Islamic treasury sukuk auction witnessed strong demand from the eight primary distributors across the two tranches maturing in October 2027 and May 2030. The total value of bids submitted reached AED 5.48 billion, representing approximately five times the issuance size. 

This high demand reflects investor confidence in the strength of the Islamic finance sector and the resilience of the national economy. The success of the auction is highlighted by the competitive pricing based on market mechanisms, achieved at a yield to maturity (Y).

The Ministry of Finance, as the issuer, and in cooperation with the Central Bank of the UAE, as the issuing and payment agent, announced the success of the November auction of AED 1.1 billion in UAE dirham-denominated Islamic Treasury Sukuk (T-Sukuk), as part of the 2025 Islamic Treasury Sukuk Program, as published on the Ministry's official website.

These sukuk are listed on Nasdaq Dubai under the UAE Islamic Treasury Sukuk Program, enhancing investor accessibility in the secondary market. During 2025, the Ministry successfully executed nine auctions, with total issuances of AED 9.9 billion and maturities ranging from two to five years.

The total value of bids received during the year reached AED 53.8 billion, reflecting a strong average coverage ratio of 5.4 times. The program also achieved competitive pricing with an average yield to maturity (Y). 

The spread was no more than 3 basis points above the yields of comparable US Treasury bonds at the time of issuance, underscoring the strong demand for UAE dirham-denominated sovereign sukuk compliant with Sharia principles.

The regular issuance policy has played a pivotal role in building and strengthening the dirham yield curve, which is now available on the Bloomberg platform. This enhances transparency for all investors and makes it easier for other issuers to use the sovereign yield curve as a benchmark for pricing their national currency capital market issuances.

It is worth noting that Islamic treasury sukuk contribute to building the UAE dirham yield curve and provide investors with safe investment alternatives. This, in turn, enhances the competitiveness of the local debt capital market, improves the investment environment, and supports sustainable economic growth.