UAE’s Islamic T-Sukuk auction attracts AED 6.93bn in bids

The UAE Ministry of Finance announced the successful completion of the May 2025 auction of UAE Dirham-denominated Islamic Treasury Sukuk (T-Sukuk) amounting to AED 1.1 billion.

The issue received an overwhelming response, with the total bids reaching AED 6.93 billion, amounting to an oversubscription rate of 6.3 times.

The overwhelming response underscores the strong confidence of investors in the country’s creditworthiness and Islamic finance framework, the ministry said.

The issuance forms part of the T-Sukuk issuance programme for the year 2025.

The auction attracted robust demand from eight primary dealers across both tranches – the reopening of the May 2027 tranche and the newly issued 5-year tranche maturing in May 2030, the ministry said.

The auction results highlighted competitive, market-driven pricing with a yield to maturity (YTM) of 3.99 per cent for the May 2027 tranche and 4.06 per cent for the May 2030 tranche.

The Islamic T-Sukuk programme plays 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.

Besides, 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.