Skip to content Skip to Search
Skip navigation

UAE’s first dirham T-sukuk gets bids worth $2.3bn

WAM
The first T-sukuk auction will soon be listed on Nasdaq Dubai to promote secondary market trading

The UAE’s first AED1.1 billion ($299.6 million) dirham-denominated Islamic treasury sukuk (T-sukuk) was oversubscribed 7.6 times, getting bids worth AED8.3 billion ($2.26 billion).

The strong demand was witnessed across both tranches, with a final allocation of AED 550 million for the two-year tranche, and AED 550 million for the three-year tranche, the ministry of finance said in a statement published by the UAE state-run WAM news agency.

“T-sukuk issuances will offer high-quality Islamic assets at competitive prices due to the increase in the investor base,” UAE finance minister Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum was quoted as saying.

The first T-sukuk auction will soon be listed on Nasdaq Dubai to promote secondary market trading along with primary dealers. 

The sukuk will be issued initially in two, three and five-year tenures followed by a 10-year tenor at a later date.

In April, Mohamed bin Hadi Al Hussaini, minister of state for financial affairs, said the UAE is keen to build an investment infrastructure to boost the Islamic economy as one of the key pillars of the national economy.

T-sukuk are sharia-compliant financial certificates and will be traded to reflect the local return on investment and support economic diversification and financial inclusion, he added.

The finance ministry had onboarded eight banks: Abu Dhabi Islamic Bank, Dubai Islamic Bank, Abu Dhabi Commercial Bank, Emirates NBD, First Abu Dhabi Bank, HSBC, Mashreq and Standard Chartered as primary dealers to participate in the T-sukuk auction.

Latest articles

City, Urban, Architecture

Interest in Saudi commercial space may be peaking

Weakening demand in Saudi Arabia’s commercial sector suggests the market could be reaching a plateau, a new survey indicates.  The Global Commercial Property Monitor report by the UK’s Royal Institution of Chartered Surveyors (Rics) found that demand for space rose by 20 percent in the second quarter of 2024, compared with a 53 percent rise […]

Aircraft, Airliner, Airplane

Tunisair growth slows as costs rise

Tunisair’s revenue increased by only 3 percent year on year to TND695 million ($224 million) in the first half of 2024, as fuel costs rose and its market share shrank. Passenger numbers went up by 2 percent to 1.17 million, compared to 1.15 million a year ago, the state-run Tunis Afrique Presse reported. Average revenue […]

A cattle drive in the Pantanal region. Meat is a major component of Brazil's trade with Saudi Arabia

Brazil’s JBS to open Saudi food factory as trade ties deepen

Brazilian multinational JBS is to open a food factory in Saudi Arabia with an investment of SAR500 million ($133 million), in a further sign of the strengthening ties between the two countries. JBS, one of the largest meat and poultry producers in the world, will open the facility in Jeddah under its subsidiary Seara by […]