In April 2025, the UAE's Ministry of Finance, in collaboration with the Central Bank of the UAE, conducted an Islamic Treasury Sukuk (T-Sukuk) auction that garnered significant investor interest. The auction, part of the UAE's ongoing efforts to develop its dirham-denominated yield curve, offered AED 1.1 billion in sukuk and attracted bids totaling AED 6.91 billion (approximately $1.88 billion), resulting in an oversubscription rate of 6.3 times. 

The issuance included two tranches maturing in May 2027 and September 2029, with yields to maturity set at 4.32% and 4.43%, respectively. These yields represent spreads of 7 and 10 basis points over comparable U.S. Treasuries, reflecting the competitive pricing achieved through the auction. 

This successful auction underscores the UAE's commitment to strengthening its local debt capital market and providing secure investment alternatives. The robust demand from investors highlights confidence in the country's economic stability and the attractiveness of its Islamic finance instruments.