Treasury Sukuk & Bonds Auction for October 2026 Attracts Bids Worth AED4.54 Billion
(MENAFN- MOF.GOV) Abu Dhabi, UAE – 31 October 2026:
The Ministry of Finance (MoF), in its capacity as issuer and in collaboration with the Central Bank of the UAE (CBUAE) as issuing and payment agent, announced the successful completion of the October 2026 auction of UAE dirham-denominated Islamic Treasury Sukuk (T-Sukuk) and Treasury Bonds (T-Bonds), with a total issuance of AED 1.1 billion. This transaction is part of the T-Sukuk issuance program for 2026, as published on the MoF’s official website.
The auctions witnessed strong participation from the primary dealers for the T-Sukuk maturing in October 2029 and the T-Bonds tranche maturing in January 2031. Total bids amounted to AED 4.54 billion, representing an oversubscription of 4.1 times. This robust demand reflects investors’ confidence in the UAE's creditworthiness and Islamic finance framework.
The auction results highlighted competitive, market-driven pricing with a YTM of 4.95% for the new T-Sukuk tranche maturing in October 2029 and 5.05% for the T-Bond tranche maturing in January 2031. These yields represent tight spreads of 19 and 26 to basis points respectively, above comparable U.S. Treasuries at the time of issuance. Additionally, the T-Sukuk & T-Bonds are listed with Nasdaq Dubai, enhancing investor access in the secondary market.
The AED T-Bond and T-Sukuk programmes play a vital role in supporting the development of the UAE’s dirham-denominated yield curve, offering secure investment instruments for a wide range of investors. Furthermore, it reinforces the local debt capital market, contributes to the development of the broader investment landscape, and supports the UAE’s long-term economic sustainability and growth objectives.
The Ministry of Finance (MoF), in its capacity as issuer and in collaboration with the Central Bank of the UAE (CBUAE) as issuing and payment agent, announced the successful completion of the October 2026 auction of UAE dirham-denominated Islamic Treasury Sukuk (T-Sukuk) and Treasury Bonds (T-Bonds), with a total issuance of AED 1.1 billion. This transaction is part of the T-Sukuk issuance program for 2026, as published on the MoF’s official website.
The auctions witnessed strong participation from the primary dealers for the T-Sukuk maturing in October 2029 and the T-Bonds tranche maturing in January 2031. Total bids amounted to AED 4.54 billion, representing an oversubscription of 4.1 times. This robust demand reflects investors’ confidence in the UAE's creditworthiness and Islamic finance framework.
The auction results highlighted competitive, market-driven pricing with a YTM of 4.95% for the new T-Sukuk tranche maturing in October 2029 and 5.05% for the T-Bond tranche maturing in January 2031. These yields represent tight spreads of 19 and 26 to basis points respectively, above comparable U.S. Treasuries at the time of issuance. Additionally, the T-Sukuk & T-Bonds are listed with Nasdaq Dubai, enhancing investor access in the secondary market.
The AED T-Bond and T-Sukuk programmes play a vital role in supporting the development of the UAE’s dirham-denominated yield curve, offering secure investment instruments for a wide range of investors. Furthermore, it reinforces the local debt capital market, contributes to the development of the broader investment landscape, and supports the UAE’s long-term economic sustainability and growth objectives.
MOF.GOV
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