The UAE raised AED 1.1 billion (about $299.5 million) through its October 2026 Treasury sukuk and bond auction. The auction attracted strong investor interest, with total bids reaching AED 4.54 billion (about $1.24 billion), 4.1 times the amount offered.

The UAE Ministry of Finance, in collaboration with the Central Bank of the UAE, announced the successful auction of dirham-denominated Treasury Islamic Sukuk (T-Sukuk) and Treasury Bonds (T-Bonds).

Primary dealers participated in the auction for sukuk maturing in October 2029 and Treasury bonds maturing in January 2031.

Demand for UAE Treasury securities reaches AED 4.54 billion

The Ministry of Finance said total bids in the auction reached AED 4.54 billion, compared with an issuance value of AED 1.1 billion.

Demand was therefore 4.1 times the amount offered, reflecting strong investor interest in the UAE’s dirham-denominated government debt instruments.

The auction was held under the UAE’s 2026 Treasury sukuk issuance programme, details of which are available on the Ministry of Finance’s official website.

Under the programme, the Ministry of Finance is responsible for issuing the securities, while the Central Bank of the UAE acts as the issuing and paying agent.

Yields on UAE Treasury sukuk and bonds

The auction results showed the following yields to maturity:

  • Treasury Islamic Sukuk: 4.95% yield, maturing in October 2029
  • Treasury Bonds: 5.05% yield, maturing in January 2031

The Ministry of Finance said the yields reflected competitive, market-based pricing.

At issuance, the sukuk yield was set 19 basis points above comparable US Treasuries. The spread for the UAE Treasury bonds was 26 basis points.

Both securities are listed on Nasdaq Dubai and can be traded on the secondary market.

Developing the debt market and dirham-denominated financial instruments

The Ministry of Finance said the Treasury sukuk and bond issuance programmes support the development of the UAE’s dirham-denominated debt yield curve.

The programmes also provide market participants with new investment instruments and help expand the domestic debt capital market.

Another objective is to establish market-based pricing benchmarks for government debt, a move that could strengthen the investment environment and support the UAE’s long-term economic development.

The October 2026 auction forms part of the UAE’s broader efforts to strengthen its domestic debt market and expand dirham-denominated financing instruments.