UAE T-Sukuk And T-Bonds Auctions Draw AED5.15 Billion In Bids At Tight Yields

The Ministry of Finance confirmed the January 2026 auctions for UAE dirham-denominated Treasury Islamic Sukuk and Treasury Bonds raised AED1.1 billion. Investors submitted AED5.15 billion in bids, indicating demand of 4.7 times the offered amount. Officials said the results underline confidence in the UAE’s financial system and broader economic outlook.

The Ministry of Finance acted as issuer, while the Central Bank of the UAE served as issuing and payment agent. These auctions are the first T-Sukuk and T-Bonds operations scheduled for the 2026 calendar year, in line with the issuance calendar published on the Ministry of Finance’s official website.

The January operation introduced a new tranche of Treasury Bonds, the first fresh line under the programme since March 2023. This issuance is intended to support the AED yield curve, while also adding to depth and liquidity in the secondary market for dirham-denominated government securities.

Two instruments were offered in the latest auctions. The T-Sukuk series will mature in October 2027, and the new T-Bonds tranche will mature in January 2031. Primary dealers showed strong interest in both lines, which helped achieve competitive pricing levels and broad distribution across the domestic market.

The Ministry of Finance reported a yield to maturity of 3.66 percent for the T-Sukuk tranche. The T-Bonds tranche priced at a yield to maturity of 3.90 percent. According to the announcement, these levels were up to 9 basis points above comparable US Treasuries at the time of pricing.

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The T-Sukuk and T-Bonds are listed on Nasdaq Dubai, which is intended to improve access for regional and international investors in the secondary market. With the January transactions completed, total outstanding under the two programmes has risen to AED28 billion, across maturities ranging from two to five years.

Officials stated that the AED T-Sukuk and T-Bond programmes help shape a dirham-denominated yield curve and provide secure options for different types of investors. The programmes also support the domestic debt capital market, aid the wider investment environment, and back the UAE’s longer-term economic sustainability and growth strategies.

With inputs from WAM