Strong investor demand for UAE Treasury securities
Primary dealers demonstrated robust participation across the T-Sukuk tranche maturing in October 2027 and the T-Bonds tranche maturing in January 2031. Total bids surged to AED4.83 billion, resulting in a strong oversubscription rate of 4.4 times. This substantial demand underscores enduring investor confidence in the robust performance of the UAE’s financial sector and the overall resilience of the national economy.
Competitive pricing and market performance
The auction results delivered competitive, market-driven pricing, recording a yield to maturity (YTM) of 4.49% for the October 2027 T-Sukuk tranche and 4.48% for the January 2031 T-Bond tranche. These yields corresponded to spreads of 24 and 4 basis points, respectively, above comparable US Treasury securities at the time of issuance. Furthermore, both the T-Sukuk and T-Bonds are listed on Nasdaq Dubai to improve investor accessibility within the secondary market.
Supporting UAE’s debt market development
The dirham-denominated T-Sukuk and T-Bond programmes remain vital to advancing the UAE’s dirham-denominated yield curve by offering secure, high-quality investment instruments to a diverse investor base. Ultimately, these ongoing issuances strengthen the local debt capital market, diversify the investment landscape, and contribute to the UAE’s long-term economic sustainability and growth strategy.