The UAE Ministry of Finance raised Dh1.1 billion in its July 2025 Islamic Treasury Sukuk (T-Sukuk) auction, drawing total bids of Dh5.35 billion from eight primary dealers, according to a statement issued jointly with the Central Bank of the UAE.
The issuance covered two tranches maturing in August 2028 and May 2030. The 2028 tranche cleared with a yield to maturity (YTM) of 3.88%, while the 2030 tranche was priced at 3.95%. Both yields align with comparable US Treasury benchmarks at the time of issuance.
The auction, part of the ministry’s 2025 sukuk issuance calendar, was nearly five times oversubscribed, signalling continued investor demand for dirham-denominated sovereign instruments. The results also highlight increasing participation in the local Islamic debt market, as the UAE develops a dirham-based yield curve to deepen its domestic capital markets.
The T-Sukuk programme was launched in 2023 and complements the conventional dirham-denominated bond issuance platform. It provides liquidity management tools for Islamic banks and aligns with the government’s broader objective of supporting economic diversification and financial market development.
The Ministry of Finance said future auctions will follow the previously published schedule and will continue to support public debt strategy and fiscal sustainability efforts.
