Islamic Treasury Sukuk Auction for November 2025 Attracts Bids Worth AED 5.48 Billion

• Marking an oversubscription of 5 times.
• Yield to Maturity (YTM) of 3.52% for the October 2027 tranche and 3.63% for the May 2030 tranche, with a tight spread of up to 5 basis points above comparable US Treasuries at the time of issuance.
• Ministry of Finance launches 9 Islamic treasury sukuk auctions in 2025.

Abu Dhabi, UAE – 28 November   2025: The Ministry of Finance (MoF), in its capacity as issuer and in collaboration with the Central Bank of the UAE (CBUAE) as issuing and payment agent, announced the successful completion of the November 2025 auction of UAE dirham-denominated Islamic Treasury Sukuk (T-Sukuk), with a total issuance of AED 1.1 billion. This is the last auction for the calendar year 2025 of the T-Sukuk issuance program, as published on the MoF’s official website.

The auction witnessed strong participation from the eight primary dealers across both tranches maturing in October 2027 and May 2030. Total bids amounted to AED 5.48 billion, representing an oversubscription of 5 times. This robust demand reflects investors’ confidence in the UAE's creditworthiness and Islamic finance framework.

The auction results highlighted competitive, market-driven pricing with a YTM of 3.52% for the October 2027 tranche and 3.63% for the May 2030 tranche. These yields represent a tight spread of up to 5 basis points above comparable U.S. Treasuries at the time of issuance. Additionally, these Sukuk are listed under the UAE Treasury Islamic Sukuk Programme with Nasdaq Dubai, enhancing investor access in the secondary market.

During the full year 2025, the Ministry successfully conducted nine auctions, issuing a total of AED 9.9 billion, with maturities ranging between 2 years to 5 years. Total bids received throughout the year reached AED 53.8 billion, reflecting a robust average oversubscription of 5.4 times. The programme also delivered highly competitive pricing, achieving an average spread of only 3 basis points above comparable U.S. Treasuries at the time of issuance, underscoring the strong demand for UAE sovereign dirham-denominated Islamic instruments. The issuance activity at regular intervals has played a pivotal role in building and strengthening the UAE local currency Dirham yield curve, which is now available on Bloomberg, enhancing transparency for all investors and accessibility to all other issuers who would like to benchmark their spread to the sovereign yield curve for any domestic currency capital market issuance.

The Islamic T-Sukuk program 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. Furthermore, 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.