The Ministry of Finance (MoF), acting as the issuer and in coordination with the Central Bank of the UAE as issuing and payment agent, has launched the first seven-year tranche of UAE dirham-denominated Islamic Treasury Sukuk (T-Sukuk), valued at approximately $150 million.

The issuance marks the longest tenor introduced under the program to date, highlighting efforts to extend and deepen the dirham-denominated yield curve.

The new tranche attracted strong investor demand of around $844 million, nearly six times the size of the offering, reflecting continued confidence in the UAE’s economic fundamentals and Islamic finance framework.

The launch is part of the MoF’s February auction of UAE dirham-denominated Islamic Treasury Sukuk, which raised approximately $300 million. The issuance falls under the Islamic Treasury Sukuk Program for 2026, as outlined on the ministry’s official website.

The auction saw solid participation from eight primary dealers across two tranches maturing in May 2030 and February 2033. Combined bids reached about $1.6 billion, translating into an oversubscription rate of 5.3 times, with the seven-year tranche alone nearly six times oversubscribed.

Pricing was described as competitive and market-driven. The May 2030 tranche recorded a yield to maturity of 3.53 percent, while the February 2033 tranche achieved a yield to maturity of 3.779 percent. It was priced below par relative to comparable US Treasuries at the time of issuance.

The sukuk are listed under the UAE Treasury Islamic Sukuk Program on Nasdaq Dubai, thereby supporting secondary-market liquidity and investor access.