Abu Dhabi, UAE – The Ministry of Finance, as the issuer, and in cooperation with the Central Bank of the United Arab Emirates, as the issuing and paying agent, announced the success of the auction of government treasury bonds (T-Bonds) denominated in UAE dirhams. For May 2026, with a total issuance volume of AED 1.1 billion.
This auction comes as part of the annual treasury bond issuance program for 2026. According to the schedule published on the official website of the Ministry of Finance.
The auction witnessed strong demand from banks dealing in the treasury bond tranche due in September 2027 and the tranche due in January 2031. The total value of the submitted bids amounted to 4.74 billion UAE dirhams, equivalent to about 4.3 times the size of the issue.
strong financial sector
This strong demand reflects investors’ continued confidence in the strength of the UAE’s financial sector and the durability of the national economy.
The auction results showed competitive pricing, with the yield to maturity (YTM) reaching 4.03% for the bond tranche due in September 2027 and 4.30% for the bond tranche due in January 2031. The realized returns represent a small price differential of up to 14 basis points on US Treasury bond yields for terms similar to the two tranches at the time of issuance.
The two tranches of treasury bonds will also be listed on Nasdaq Dubai. Which enhances the ease of access for investors in the secondary market.
Successful releases
This represents the third successful issuance since the outbreak of regional tensions, with the three issuances totaling AED 3.3 billion. The value of subscription requests exceeded AED 14.5 billion, with pricing differences ranging between 6 and 23 basis points across maturities ranging from 18 months to 7 years.
It should be noted that the local currency sukuk and bond programs work to build a return curve denominated in the UAE dirham, and provide safe investment alternatives to investors. This contributes to enhancing the competitiveness of the domestic debt capital market, improving the investment environment, and supporting sustainable economic growth.
