UAE Secures AED1.1 Billion in April T-Sukuk Auction Amid Strong Demand

In a collaboration between the Ministry of Finance (MoF) and the Central Bank of the UAE, the April 2026 Islamic Treasury Sukuk (T-Sukuk) auction successfully garnered AED1.1 billion.

This auction is part of the ongoing T-Sukuk programme for 2026, designed to enhance financial stability and provide secure investment opportunities in the UAE.

The auction featured robust participation from eight primary dealers across two different tranches, including one maturing in October 2027 and another seven-year Sukuk set to mature in February 2033.

Total bid amounts reached AED5.20 billion, indicating an impressive oversubscription rate of 4.7 times, reinforcing the notable investor confidence in the UAE's robust financial framework.

The seven-year Sukuk tranche also performed admirably with a coverage ratio of 5 times, being priced just 10 basis points above US Treasury yields, a testament to its competitive nature. This follows on from a successful prior issuance in February 2026, which was oversubscribed by six times and offered yields below similar US Treasury rates.

The results of this auction signify the government's dedication to establishing a dependable dirham-denominated yield curve. Specifically, the Yield to Maturity (YTM) for the October 2027 tranche was 3.92% and 4.13% for the February 2033 tranche, showcasing competitive pricing with spreads of 23 basis points and 10 basis points respectively over US Treasuries.

The Sukuk are listed on Nasdaq Dubai, facilitating easier access for investors in secondary markets.

The UAE’s Islamic T-Sukuk programme continues to bolster the local debt market's growth, providing secure investment avenues while contributing to the nation's long-term economic aspirations.