UAE Secures AED1.1 Billion in Latest Treasury Bond Auction

Post by : Bianca Suleiman

The UAE Ministry of Finance (MoF), in collaboration with the Central Bank of the UAE (CBUAE), achieved a significant milestone in their May 2026 Treasury Bond (T-Bond) auction by raising AED1.1 billion.

This auction was part of the annual T-Bond issuance program for 2026 published by the Ministry of Finance. The Central Bank served as the issuing and payment agent throughout the process.

There was remarkable interest from primary dealers, with overall bids amounting to AED4.74 billion. This indicates an oversubscription rate of 4.3 times, underlining the persistent investor trust in the UAE’s robust financial framework and stable economy.

The auction offered two T-Bond tranches maturing in September 2027 and January 2031.

Competitive pricing was achieved, with a Yield to Maturity (YTM) of 4.03% for the September 2027 tranche and 4.30% for the January 2031 tranche. These yields demonstrated a narrow spread of up to 14 basis points above similar U.S. Treasury bonds at issuance.

The Ministry confirmed the listing of the T-Bonds on Nasdaq Dubai, thereby enhancing investor accessibility and secondary market trading opportunities.

This marks the third successful bond issuance by the UAE amid regional tensions. Collectively, these three issuances have generated AED3.3 billion, attracting over AED14.5 billion in bids. The pricing spreads across these transactions varied between 6 and 23 basis points for maturities ranging from 18 months to 7 years.

The UAE’s T-Bond and T-Sukuk programs are vital for expanding the dirham-denominated yield curve. They provide secure investment avenues, bolster the local debt market, enhance the investment climate, and contribute to the long-term goals of economic growth and sustainability in the UAE.

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