UAE boosts dirham-denominated sukuk with AED 1.1bn increase listed on Nasdaq Dubai
UAE increases dirham-denominated sukuk by AED 1.1bn on Nasdaq Dubai to deepen the AED yield curve, expand investor access and bolster fixed-income markets.
The Ministry of Finance has increased two tranches of dirham-denominated sukuk by a combined AED 1.1 billion, a move celebrated on Nasdaq Dubai as part of the government’s effort to deepen the local fixed-income market. Minister of State for Financial Affairs Mohammed bin Hadi Al-Husseini rang the opening bell at Nasdaq Dubai to mark the listings, underscoring the role of Islamic Treasury sukuk in the UAE’s financing strategy. The announcement reaffirms the government’s focus on developing the AED yield curve and widening access to Sharia-compliant sovereign instruments.
Minister Rings Nasdaq Dubai Opening Bell
Mohammed bin Hadi Al-Husseini personally opened trading on Nasdaq Dubai to mark the additional issuances, highlighting the Ministry of Finance’s continued support for the sukuk programme. The ceremony signalled the government’s intent to maintain an active supply of high-quality, dirham-denominated sovereign securities. Officials described the move as consistent with long-term plans to build depth and liquidity in UAE local-currency debt markets.
Two tranches add AED 1.1bn to outstanding sukuk
The increases consisted of two equal increments of AED 550 million each added to existing tranches of Islamic Treasury sukuk. One increase was applied to a tranche carrying a 3.49% yield maturing in October 2027, bringing that tranche’s outstanding balance to AED 2.2 billion. The second AED 550 million added to a tranche with a 3.779% yield due in February 2033, taking its outstanding balance to AED 1.1 billion.
Policy aims: deepen the AED yield curve and broaden investor base
The Ministry of Finance said the additional issuances are intended to support development of a robust AED yield curve and to provide more investment options denominated in the local currency. By expanding the supply of government paper in dirhams, policymakers aim to attract a wider mix of regional and international investors seeking Sharia-compliant instruments. The expanded programme is also framed as a tool to promote market stability and improve the pricing benchmark for other UAE issuers.
Market impact and Nasdaq Dubai listings
With the new increases, the total value of UAE government sukuk listed on Nasdaq Dubai has risen to approximately $7.5 billion, reflecting ongoing momentum in the sovereign sukuk programme. Nasdaq Dubai’s overall sukuk listings stand at about $99.4 billion, illustrating the exchange’s significant role as a regional hub for Islamic finance. Market participants said larger, more liquid government tranches generally help support secondary market activity and provide clearer reference points for corporate and sovereign issuances.
Officials cite credit strength and investor confidence
Minister Al-Husseini emphasised that the additional issuances reflect the UAE’s strong credit profile and the soundness of its financial infrastructure. He said the moves demonstrate confidence in the government’s ability to deliver reliable, high-quality sovereign instruments that enhance market liquidity. Nasdaq Dubai chairman Abdulwahid Al Fahim noted the strong investor demand for the programme, saying it underscores the UAE’s standing as an attractive destination for capital across the region and beyond.
Nasdaq Dubai and DFM underscore Islamic finance role
Hamid Ali, chief executive of Nasdaq Dubai and Dubai Financial Market, said the latest sukuk increases illustrate the expanding significance of Islamic finance within global capital markets. He highlighted Nasdaq Dubai’s role in providing a platform that facilitates access to sovereign issuances and supports market development. Executives added that as investor appetite grows, the exchange will continue to offer infrastructure that helps issuers and investors transact efficiently.
The Ministry of Finance indicated it will persist with measures to refine the government’s domestic debt instruments and ensure issuance practices align with international standards and market needs. The expanded dirham-denominated sukuk supply is positioned as part of a broader strategy to reinforce the UAE’s financial architecture and to sustain investor confidence in sovereign debt instruments.
