UAE raises $300m in June 2025 Islamic T-Sukuk auction, oversubscribed 5.6 times

The UAE Ministry of Finance (MoF) has announced the successful completion of its June 2025 auction of Islamic Treasury Sukuk (T-Sukuk), raising AED1.1bn ($300m) as part of its broader 2025 issuance program.

The auction, conducted in coordination with the Central Bank of the UAE (CBUAE), drew strong demand from eight primary dealers, reflecting continued investor trust in the UAE’s fiscal framework and Islamic finance model.

The auction results highlighted competitive, market-driven pricing with a Yield to Maturity (YTM) of 3.88 per cent for the May 2027 tranche and 3.83 per cent for the August 2028 tranche.

Islamic Sukuk in UAE

These yields represent a tight spread of 2 basis points, above comparable US Treasuries at the time of issuance.

The tight spreads and high participation signal market-driven pricing and growing demand for Shariah-compliant sovereign debt instruments.

The Ministry confirmed the auction aligns with its commitment to developing a dirham-denominated yield curve and broadening local capital markets, offering investors a stable and secure platform within the country’s economic ecosystem.

In a statement, the MoF reiterated that the Islamic T-Sukuk programme:

• Enhances investment options in line with Islamic principles
• Supports liquidity management for local and regional financial institutions
• Strengthens the United Arab Emirates’ position as a regional Islamic finance leader
• Contributes to long-term fiscal sustainability