The UAE Ministry of Finance has successfully concluded the May 2025 auction of its Islamic Treasury Sukuk (T-Sukuk), issuing AED 1.1 billion in Dirham-denominated instruments. The auction generated a strong market response, receiving total bids worth AED 6.93 billion—oversubscribed by 6.3 times.
This impressive outcome reflects growing investor confidence in the UAE’s Islamic finance infrastructure and its long-term credit outlook. The auction included two tranches: a reopening of the May 2027 issuance and a newly introduced 5-year tranche maturing in May 2030.
Expanding Local Debt Market and Investor Access
The auction attracted participation from eight primary dealers, showcasing continued trust in the country’s Islamic debt instruments. According to the Ministry, the yield to maturity was competitively priced—3.99% for the May 2027 tranche and 4.06% for the May 2030 tranche.
This issuance is part of the broader T-Sukuk programme for 2025, which aims to deepen liquidity in the domestic bond market and establish a robust yield curve for UAE Dirham-denominated instruments. By offering secure, Shariah-compliant investment opportunities, the programme also enhances financial inclusion and broadens the investor base within the country.
Reinforcing Economic Growth and Financial Sustainability
T-Sukuk plays a pivotal role in reinforcing the UAE’s local debt capital market and promoting sustainable economic development. Beyond offering safe investment instruments, the programme supports the Ministry’s goal to diversify funding sources while aligning with global Islamic finance standards.
Additionally, the Ministry noted that the success of this auction continues to elevate the competitiveness of the UAE’s debt market. As a result, it contributes to the country’s long-term financial stability and positions the UAE as a regional leader in sovereign Islamic finance.
The Ministry reaffirmed its commitment to future issuances under the T-Sukuk framework, ensuring transparency, liquidity, and accessibility for institutional investors.
