The Ministry of Finance, acting as the issuer in collaboration with the Central Bank of the UAE as the agent for issuance and payment, has successfully completed a treasury bond auction (T-Bonds) denominated in UAE Dirhams for March 2026. This marks the first issuance since the escalation in the region, with a total issuance amounting to 1.1 billion Dirhams. This auction is part of the annual issuance program for treasury bonds for 2026, as outlined in the official schedule available on the Ministry of Finance’s website.
The auction experienced robust demand from participating banks for the treasury bonds maturing in September 2027 and January 2031. The total value of bids submitted reached 4.85 billion Dirhams, which is approximately 4.4 times the size of the issuance. This strong demand highlights ongoing investor confidence in the strength of the financial sector in the UAE and the resilience of the national economy, despite market fluctuations.
Auction results indicated competitive pricing, with the yield to maturity (YTM) at 3.73% for the bonds maturing in September 2027 and 3.85% for those maturing in January 2031. The yields achieved represent a slight spread of 16 basis points over the yields of similar US treasury bonds at the time of issuance. Additionally, both bond maturities have been listed on Nasdaq Dubai, enhancing investor accessibility in the secondary market.
Furthermore, the local currency sukuk and bond programs are instrumental in establishing a yield curve denominated in UAE Dirhams, providing safe investment alternatives for investors. This effort contributes to enhancing the competitiveness of the local debt capital market, improving the investment environment, and supporting sustainable economic growth.