UAE dirham Sukuk: Ministry lists AED 1.1bn additional sovereign issuances on Nasdaq Dubai
UAE dirham Sukuk: Ministry of Finance lists AED 1.1bn in additional dirham-denominated Islamic treasury sukuk on Nasdaq Dubai to deepen the local yield curve.
The UAE Ministry of Finance has listed AED 1.1 billion of additional UAE dirham Sukuk on Nasdaq Dubai, expanding two existing tranches of government Islamic treasury securities. The supplementary issuances, each worth AED 550 million, were formally admitted in a bell-ringing ceremony that highlighted the continued focus on strengthening the domestic dirham yield curve and broadening investor access.
Official listing ceremony at Nasdaq Dubai
Mohammed bin Hadi Al Husseini, Minister of State for Financial Affairs, rang the opening bell at Nasdaq Dubai to mark the admission of the two additional sukuk tranches. The event brought together senior ministry officials and Nasdaq Dubai leadership to underscore the strategic importance of the listings.
Also in attendance were Undersecretary Younes Haji Khoury, Abdulwahid Al Fahim, Chairman of Nasdaq Dubai, and Hamid Ali, Chief Executive Officer of Nasdaq Dubai and the Dubai Financial Market. The gathering signalled coordinated public and market support for the government’s debt-management program.
Details of the additional tranches
The Ministry increased the size of two outstanding AED-denominated sukuk lines by AED 550 million each. One tranche, carrying a coupon of 3.49% and maturing in October 2027, has risen to a total outstanding value of AED 2.2 billion following the top-up.
The second tranche, with a yield of 3.779% maturing in February 2033, now has a total outstanding value of AED 1.1 billion. The supplementary issuances were structured as increases to existing series rather than new maturities, preserving the programme’s tenor profile.
Ministry’s objectives and market strategy
The Ministry of Finance said the listings reflect ongoing efforts to support the UAE dirham Sukuk programme and to embed government debt instruments within a resilient national financial architecture. Officials framed the increases as part of a broader approach to deepen the local yield curve and to develop a more diversified fixed-income market denominated in dirhams.
By expanding AED-denominated supply, the Ministry aims to broaden the investor base, attract both regional and international demand for sharia-compliant instruments, and provide reliable benchmarks for pricing and liquidity across the domestic market. The move was also presented as consistent with the country’s long-term financial stability and market development objectives.
Market positioning and investor confidence
Nasdaq Dubai leadership highlighted robust investor interest in sovereign sukuk and the broader appeal of UAE issuances. Abdulwahid Al Fahim said the strong take-up underlines the market’s confidence in the Emirati economy and the government’s credit standing.
Hamid Ali noted that the latest admissions demonstrate the growing role of Islamic finance in connecting regional savings with sovereign funding needs. He added that Nasdaq Dubai continues to provide a supportive platform for issuers and a gateway for international investors seeking exposure to GCC fixed-income assets.
Impact on listings and Islamic finance hub status
Following the admission of the two additional tranches, the total value of UAE government sukuk listed on Nasdaq Dubai increased to approximately USD 7.5 billion. Nasdaq Dubai’s aggregate sukuk listings were reported at about USD 99.4 billion, underscoring the exchange’s prominence among global Islamic finance centres.
Market participants said the augmentation of dirham-denominated sovereign supply is likely to reinforce secondary-market liquidity for benchmark maturities and help establish clearer pricing for corporate and sovereign issuers in local currency. Analysts also expect the moves to support the development of domestic fixed-income funds and institutional investor strategies aligned to sharia-compliant instruments.
Outlook for the dirham yield curve and funding policy
The Ministry emphasised that it will continue refining its government debt issuance strategy in local currency to support monetary and financial market objectives. Officials signalled ongoing commitment to issuing high-quality, sharia-compliant instruments that meet international best practices and appeal to a wide spectrum of investors.
Policy makers and market operators said future issuance decisions will balance domestic market development, investor demand dynamics, and the broader macro-financial environment. Expanding the suite of AED-denominated benchmarks is intended to provide issuers and asset managers with more reference points for pricing and duration management.
The additional AED 1.1 billion of sukuk listed on Nasdaq Dubai marks the latest step in the UAE’s effort to deepen its domestic Islamic capital market and to present a diversified, stable set of instruments for both regional and global investors.