UAE treasury bonds, sukuk programmes achieve Dhs25bn in issuances

Image: WAM

The UAE’s Government Treasury Bonds and Islamic Treasury Sukuk programmes have successfully issued a total of Dhs25bn, reflecting the nation’s robust investment infrastructure and economic stability.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Prime Minister and Minister of Finance of UAE, highlighted this achievement as evidence of the UAE’s sound investment policies that enhance its appeal as a global investment destination.

“The UAE continues to cement its position as one of the most competitive and advanced economies in the world. This success reflects the country’s strong creditworthiness and substantial economic capabilities, which support the robust performance of the financial sector and contribute to sustainable growth, providing secure and advanced investment alternatives denominated in UAE dirhams for investors, and enhancing the investment environment in the country,” said Sheikh Maktoum.

Since its launch in 2022, the Treasury Bonds Programme has issued Dhs11.2bn, while the dirham-denominated Islamic Treasury Sukuk Programme has contributed Dhs13.8bn to the total.

Demand for the Islamic Treasury Sukuk has surged, reflecting a growing interest in alternative investment avenues.

Outstanding debt for the treasury bonds and sukuk programmes

The Ministry of Finance noted that the total outstanding public debt for both programmes reached Dhs20.15bn by the end of August.

This is supported by the UAE’s sovereign credit ratings of AA- from Fitch Ratings and Aa2 from Moody’s, positioning the country as a leader in creditworthiness in the region.

The treasury bonds and sukuk are issued through a local platform that meets international standards, with major banks such as Emirates NBD and Abu Dhabi Commercial Bank managing the subscription process.

Recent auctions have demonstrated strong demand, with bids exceeding subscription sizes significantly – sometimes by 8.9 times.

The ministry’s efforts to strengthen the local currency bond market and diversify funding sources are crucial in fostering a stable financial landscape, reinforcing the UAE’s position as a leading global investment hub.