31 October 2026
The UAE Ministry of Finance raised AED 1.1 billion at its October 2026 auction of dirham-denominated Islamic Treasury Sukuk (T-Sukuk) and Treasury Bonds (T-Bonds), while bids reached AED 4.54 billion, 4.1 times the amount issued. The new T-Sukuk tranche maturing in October 2029 priced at a yield to maturity of 4.95%, and the T-Bond tranche maturing in January 2031 at 5.05%. According to the Ministry’s release of 31 October 2026, these yields are 19 and 26 basis points above comparable US Treasuries at the time of issuance. Both instruments are listed on Nasdaq Dubai.
What the Ministry of Finance announced
The Ministry of Finance acts as the issuer, and the Central Bank of the UAE (CBUAE) acts as issuing and payment agent. The October auction is part of the T-Sukuk issuance programme for 2026, which the Ministry publishes on its official website. Demand came from the primary dealers, the banks that bid directly at each auction and then distribute the paper to other investors.
The key figures from the release:
- Total issuance: AED 1.1 billion across two tranches.
- Total bids: AED 4.54 billion, an oversubscription of 4.1 times.
- T-Sukuk tranche maturing in October 2029: yield to maturity 4.95%, a spread of 19 basis points over comparable US Treasuries.
- T-Bond tranche maturing in January 2031: yield to maturity 5.05%, a spread of 26 basis points over comparable US Treasuries.
- Listing: both the T-Sukuk and the T-Bonds are listed on Nasdaq Dubai for secondary market trading.
The release does not state the date of the auction or how the AED 1.1 billion was split between the two tranches. By simple subtraction, the comparable US Treasury yields the Ministry used were about 4.76% for the 2029 tranche and about 4.79% for the 2031 tranche.
How the AED T-Bond and T-Sukuk programmes work
The federal government started borrowing in its own currency in 2022 with the Treasury Bonds programme, run with the CBUAE as issuing and payment agent. In a release of 22 September 2024 the Ministry named six primary dealers for T-Bonds: Emirates NBD, Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Mashreq, HSBC and Standard Chartered. The Islamic T-Sukuk programme followed in 2023 with the same structure and the same dealers, plus two Islamic banks, Abu Dhabi Islamic Bank and Dubai Islamic Bank.
The same 2024 release gives the scale of the programmes up to that point:
- In 2022 the Ministry issued AED 9 billion of T-Bonds in six auctions of AED 1.5 billion each.
- In 2023 it held five T-Sukuk auctions of AED 1.1 billion each, AED 5.5 billion in total.
- From launch to the end of August 2024 the two programmes issued AED 11.2 billion of T-Bonds and AED 13.8 billion of T-Sukuk, AED 25 billion together.
- Outstanding domestic debt under both programmes was AED 20.15 billion at the end of August 2024.
The October 2026 auction size of AED 1.1 billion matches the standard size of the 2023 T-Sukuk auctions.
Institutional auctions and retail T-Sukuk compared
The October auction is a wholesale market for banks. It runs alongside the retail T-Sukuk that the Ministry sells directly to individuals. The second retail issue closed in September 2026 and was listed on Nasdaq Dubai on 2 October 2026.
| Feature | October 2026 auction | Second retail T-Sukuk |
|---|---|---|
| Who buys at issue | Primary dealer banks | UAE nationals and residents with Emirates ID |
| Size | AED 1.1 billion issued | AED 50 million target, AED 285 million of orders |
| Demand | 4.1 times | About 5.7 times the target |
| Return | 4.95% (2029) and 5.05% (2031) yield to maturity | 5.06% profit rate a year |
| Term | To October 2029 and January 2031 | Five years |
| Trading | Listed on Nasdaq Dubai | Listed on Nasdaq Dubai |
We covered the retail issue in detail in our article on the second retail T-Sukuk at 5.06%.
What the auction means for companies in the UAE
The auction does not change any rule, fee or procedure for companies. Its practical value is information. Each auction adds a fresh point to the dirham government yield curve, and the Ministry says supporting that curve is one of the main goals of the programmes. On 31 October 2026 the market priced federal AED debt at 4.95% to October 2029 and 5.05% to January 2031.
For a company with a UAE bank account, this gives a reference when it compares the return on a fixed deposit, a money market product or a corporate sukuk with what the federal government pays for a similar term. Access to listed government paper goes through a bank or an authorised broker, each with its own account terms, minimums and fees. The accounting and tax treatment of such investments should be checked with your auditor or tax adviser.
Before any of this, a company needs a working corporate account. Our guide to opening a bank account in the UAE explains which documents banks ask for and how long onboarding usually takes.
Checklist for a company with surplus AED cash
- Confirm that your corporate account is fully active, including online banking and treasury access.
- Ask your relationship manager which AED deposit, money market or sukuk products are available to your company and at what minimum.
- Compare the offered return with the latest federal auction yields for a similar term: 4.95% to October 2029 and 5.05% to January 2031.
- Check liquidity: how early you can exit, and at what cost, before maturity.
- Agree the accounting and tax treatment with your auditor before investing.
How Atlant Capital can help
Atlant Capital helps founders and investors set up and run companies in the UAE. We handle company setup in the mainland and free zones, prepare the document package for corporate bank account opening and support the company through KYC reviews. Investment advice on specific securities is outside our scope, and for that we recommend a licensed adviser or your bank.
Conclusion
The Ministry of Finance placed AED 1.1 billion of T-Sukuk and T-Bonds at its October 2026 auction against AED 4.54 billion of bids, 4.1 times the issue. Yields were 4.95% for the T-Sukuk to October 2029 and 5.05% for the T-Bonds to January 2031, 19 and 26 basis points over comparable US Treasuries. Both tranches are listed on Nasdaq Dubai.
Source: Khaleej Times, UAE Ministry of Finance.
FAQ
How much did the UAE raise at the October 2026 T-Sukuk and T-Bond auction?
The UAE Ministry of Finance issued AED 1.1 billion of dirham-denominated T-Sukuk and T-Bonds at its October 2026 auction. Bids totalled AED 4.54 billion, which is 4.1 times the amount issued. The results were announced on 31 October 2026.
What yields did the October 2026 UAE T-Sukuk and T-Bonds pay?
The new T-Sukuk tranche maturing in October 2029 priced at a yield to maturity of 4.95%. The T-Bond tranche maturing in January 2031 priced at 5.05%. The Ministry said these were 19 and 26 basis points above comparable US Treasuries at the time of issuance.
Who can buy UAE T-Sukuk and T-Bonds at auction?
Only primary dealer banks bid at the auctions. In 2024 the Ministry named Emirates NBD, ADCB, FAB, Mashreq, HSBC and Standard Chartered for T-Bonds, with Abu Dhabi Islamic Bank and Dubai Islamic Bank added for T-Sukuk. Both instruments are listed on Nasdaq Dubai, and individuals can also buy the separate retail T-Sukuk.
What is the difference between UAE T-Sukuk and T-Bonds?
T-Sukuk are Islamic certificates structured to comply with Sharia, while T-Bonds are conventional bonds. Both are issued in AED by the Ministry of Finance, with the Central Bank of the UAE as issuing and payment agent, and both are listed on Nasdaq Dubai.
