UAE to sell Dhs1.1bn dirham-denominated treasury sukuk

UAE to sell Dhs1.1bn dirham-denominated treasury sukuk

The UAE has launched domestic dirham-denominated Islamic treasury sukuk (T-Sukuk), with a benchmark auction size of $299m (Dhs1.1bn), as part of the country’s broader strategy to diversify its funding resources and supports the growth of the Islamic economy. The Ministry of Finance, which is the issuer on the debt sale, said the T-Sukuk will first be issued in two, three and five-year tranches, followed by a 10-year tenure sukuk at a later date. The finance ministry said the T-Sukuk is dirham-denominated to develop the local bonds debt market and support develop the mid-term yield curve. “The Ministry of Finance co-operates with all its partners, foremostly the Central Bank of the UAE, to attract investments and deploy them in Islamic economy channels,” said Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs. Al Hussaini said issuing the T-Sukuk in local currency will contribute to building a local currency bond market, diversify financing resources, boost the local financial and banking sector while providing safe investment alternatives for local and foreign investors. The ministry and the Central Bank of the UAE worked with government entities and international financial bodies to ensure best practices were followed when structuring the T-Sukuk. “This allows