The UAE’s local-currency debt market kicked off the year with a clear show of strength, as investors piled into the latest auctions of dirham-denominated Treasury Islamic Sukuk and Treasury Bonds.
The Ministry of Finance confirmed that January’s auctions raised AED 1.1 billion, marking the first issuances under the T-Sukuk and T-Bond programmes for 2026. The sale also carried extra significance: it introduced the first new Treasury Bond tranche since March 2023, adding a fresh reference point to the country’s yield curve.
Interest from primary dealers was heavy. Bids totalled AED 5.15 billion for the Sukuk maturing in October 2027 and the newly launched bond due in January 2031, translating into an oversubscription of 4.7 times. The scale of demand underlined continued confidence in the UAE’s financial framework and economic resilience.
Pricing came in tight. The Sukuk cleared at a yield to maturity of 3.66 percent, while the bond was priced at 3.90 percent—just up to nine basis points above comparable US Treasuries at the time. Both instruments are listed on Nasdaq Dubai, broadening access for investors in the secondary market.
With this issuance, the total value of outstanding T-Sukuk and T-Bonds has climbed to AED 28 billion, covering maturities ranging from two to five years. Beyond the headline numbers, the programme continues to serve a wider purpose: deepening liquidity in the dirham market, strengthening the local debt ecosystem, and anchoring the UAE’s long-term funding strategy.
