The UAE’s October auctions of dirham-denominated Treasury sukuk and Treasury bonds drew AED4.54 billion in bids for a combined issue of AED1.1 billion, the Ministry of Finance said on Saturday, according to Al Khaleej.
Bids were about 4.1 times the issue size, the ministry said. The ministry acts as issuer, and the Central Bank of the UAE serves as issuing and payment agent.
Primary dealers bid for a new Treasury sukuk (T-Sukuk) tranche maturing in October 2029 and for Treasury bonds (T-Bonds) maturing in January 2031.
The sukuk priced at a yield to maturity of 4.95%, and the bonds at 5.05%. Those yields were 19 to 26 basis points above US Treasuries of similar maturities at the time of issue, the ministry said.
Both tranches will be listed on Nasdaq Dubai to give investors access in the secondary market.
The ministry’s issuance calendar lists the auction for October 27, with AED550 million in each tranche. The sukuk maturing on October 29, 2029, is a new line, while the bonds maturing on January 29, 2031, are a reopening of an existing issue.
Demand eased from July, when the auctions of the October 2027 sukuk and the January 2031 bonds drew AED4.83 billion in bids, or 4.4 times the AED1.1 billion on offer, according to WAM. Those tranches priced at yields of 4.49% and 4.48%.
Outstanding institutional domestic debt stood at AED31.25 billion as of October 14, according to the calendar. The program plans AED11 billion of institutional issuance in 2026, with the next auction set for November 24.
The ministry said the local currency programs aim to build a dirham yield curve, offer investors safe alternatives and deepen the domestic debt capital market.
