UAE treasury bonds and sukuk programs reach AED 25 billion milestone

The UAE Ministry of Finance announced that its Government Treasury Bonds Programme and Dirham-denominated Islamic Treasury Sukuk Programme have collectively issued AED 25 billion since their inception through August 2024.

Launched in 2022, the programs have successfully issued AED 11.2 billion in Treasury Bonds and AED 13.8 billion in Islamic Treasury Sukuk.

First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum highlighted the significance of this achievement, stating, “The UAE continues to solidify its position as one of the world’s most competitive and advanced economies. This success demonstrates our strong creditworthiness and substantial economic capabilities, which bolster the financial sector's performance, contribute to sustainable growth, and provide secure, advanced investment options denominated in UAE dirhams.”

The ministry settled AED 4.85 billion in two-year Treasury Bonds in May 2024, raising the total outstanding bonds to AED 6.35 billion.

By August 2024, the total outstanding domestic public debt under both programs reached AED 20.15 billion.
The UAE has been awarded a sovereign credit rating of AA- with a stable outlook from Fitch Ratings and an Aa2 rating from Moody’s, the highest in the region.

The Treasury Bonds Programme, established in partnership with the Central Bank of the UAE, uses the Bloomberg Auction System for issuance and settlement.

Six leading UAE banks, including Emirates NBD, Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Mashreq Bank, HSBC, and Standard Chartered Bank, serve as primary distributors.

Following the success of the Treasury Bonds Programme, the Islamic Treasury Sukuk Programme was launched, adhering to similar practices and standards. Abu Dhabi Islamic Bank and Dubai Islamic Bank were added as primary distributors for this program.

Both programs have witnessed strong demand, with auctions consistently oversubscribed. Bonds and sukuk are available in two, three, and five-year tranches, with plans for longer-term issuances in the future.

Sheikh Maktoum emphasized the need to continue supporting transformative initiatives that foster the financial sector's development and align with the country's strategic plans.