The UAE Ministry of Finance, acting as issuer, and the Central Bank of the UAE, acting as issuance and payment agent, have announced the successful completion of the May 2026 government T-bond auction, raising AED 1.1bn in dirham-denominated securities.
Total bids from primary dealer banks reached AED 4.74bn, roughly 4.3 times the issuance size, across two tranches: bonds maturing in September 2027 and bonds maturing in January 2031. Yields to maturity came in at 4.03% and 4.30% respectively, with a spread of just 14 basis points over equivalent US Treasuries at the time of issuance. Both tranches will be listed on Nasdaq Dubai, giving investors secondary market access.
The auction marks the third successful issuance since the onset of regional tensions. Across all three, total issuances have reached AED 3.3bn, with subscription demand exceeding AED 14.5bn and pricing spreads ranging between 6 and 23 basis points across maturities spanning 18 months to seven years.
The Ministry said the dirham-denominated T-bond and sukuk programmes are designed to build out the UAE’s local currency yield curve, provide safe investment alternatives, and deepen the domestic debt capital market.
