UAE launches Domestic Dirhams Islamic Treasury Sukuk with size of AED1.1 billion

UAE launches Domestic Dirhams Islamic Treasury Sukuk with size of AED1.1 billion

ABU DHABI, 26th April, 2023 (WAM) -- The UAE, represented by the Ministry of Finance (MoF) as the issuer and in collaboration with the Central Bank of the UAE (CBUAE) as the issuing and paying agent, has announced launching a dirham- denominated Islamic Treasury Sukuk (T-Sukuk), with a benchmark auction size of AED1.1 billion.

Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, reaffirmed the UAE's keenness to strengthen the Islamic economy and build a pioneering investment infrastructure to boost the Islamic economy as one of the key pillars of the national economy.

Al Hussaini said, “The Ministry of Finance cooperates with all its partners, foremostly the Central Bank of the UAE, to attract investments and deploy them in Islamic economy channels. The T-Sukuk are Sharia-compliant financial certificates, and they will be traded to reflect the local return on investment, support economic diversification and financial inclusion, and contribute to achieving comprehensive and sustainable economic and social development goals.”

Additionally, he emphasised that issuing the T-Sukuk in local currency will contribute to building a local currency bond market, diversifying financing resources, boosting the local financial and banking sector, and providing safe investment alternatives for local and foreign investors.

He also noted that this