Abu Dhabi:The United Arab Emirates has successfully launched its first-ever 7-year Islamic Treasury Sukuk, marking a major milestone in the country’s Islamic finance and capital markets development.
The sukuk issuance, valued at AED 550 million, witnessed exceptionally strong investor interest, with demand reaching nearly six times the offered amount. Total bids reportedly crossed AED 3.1 billion, highlighting robust confidence from regional and international investors.
This issuance represents the longest maturity sukuk introduced under the UAE’s Islamic Treasury Sukuk Programme to date. The strong oversubscription reflects growing appetite for Shariah-compliant, dirham-denominated investment instruments, particularly those backed by the UAE government.
Strengthening Islamic Finance and Capital Markets
Financial experts note that the successful launch supports the UAE’s strategy to:
- Deepen the Islamic finance ecosystem
- Strengthen local currency capital markets
- Provide diversified, ethical investment options
- Enhance the country’s position as a global Islamic finance hub
The sukuk programme also plays a key role in offering high-quality, low-risk investment instruments while contributing to long-term financial sustainability.
Positive Signal for the UAE Economy
The strong demand for the 7-year sukuk is seen as a positive signal for the broader UAE economy. It underscores investor confidence in the country’s economic fundamentals, fiscal strength, and long-term growth outlook.With this landmark issuance, the UAE continues to reinforce its leadership in Islamic finance while expanding funding avenues aligned with global best practices and Shariah principles.
Source: Public news reports