UAE Ministry of Finance to issue dirham-denominated Islamic Treasury Sukuk

UAE Ministry of Finance to issue dirham-denominated Islamic Treasury Sukuk

Dubai: The UAE Ministry of Finance is launching a dirham-denominated Islamic Treasury Sukuk (T-Sukuk), with a benchmark auction size of Dh1.1 billion. The T-Sukuk will initially be issued in 2/3/5-year tenures and followed by a 10-year sukuk at a later date. “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," said Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs. "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, as well as contribute to achieving comprehensive and sustainable economic and social development goals.” The T-Sukuk will be issued initially in 2/3/5-year tenors, followed by a 10-year sukuk at a later date. It will be denominated in dirhams to 'develop the local bonds debt market and help develop the mid-term yield curve'. The Ministry of Finance and the Central Bank of the UAE work with relevant government entities and international financial entities to 'ensure best practices were followed when structuring the T-Sukuk'. "This allows for further development of Islamic finance in the country and cements