The Ministry of Finance, in partnership with the Central Bank of the UAE (CBUAE) as the issuing and paying agent, proudly announced the results of a recent auction for Dhs1.1 billion in Islamic Treasury Sukuk (T-Sukuk). This auction is part of the Islamic T-Sukuk issuance program set for August 2024, as detailed on the Ministry’s official website. The auction experienced remarkable enthusiasm, drawing bids from eight primary dealers that totaled Dhs6.32 billion, oversubscribing the issuance by an impressive 5.7 times. This strong demand is reflected in the competitive market-driven pricing, with a Yield to Maturity (YTM) of 4.04% for the May 2026 tranche and 3.88% for the May 2027 tranche—both rates positioned just 0 to 9 basis points above comparable US Treasuries at the time of the auction. The Islamic T-Sukuk issuance program aims to enhance the UAE dirham-denominated yield curve, offering secure investment options for investors while bolstering the local debt capital market. This initiative not only fosters a more robust investment environment but also plays a vital role in supporting sustainable economic growth. Earlier this year, in March, the UAE, represented by the Ministry of Finance and collaborating with CBUAE, had also announced the results of another Islamic Treasury Sukuk auction as part of its Q1 2024 issuance program, further showcasing its commitment to developing innovative financial solutions.