The Ministry of Finance lists increases in the issuance of dirham-denominated treasury bonds on Nasdaq Dubai.

The Minister of State for Financial Affairs, Mohammed bin Hadi Al Husseini, rang the opening bell of the trading session on the Nasdaq Dubai Stock Exchange, to celebrate the listing of increases in Islamic treasury sukuk issues denominated in the UAE dirham by the Ministry of Finance, with a total value of 1.1 billion dirhams.

The stock exchange stated, in a statement yesterday, that these additional issuances come within two existing tranches of Islamic treasury sukuks, by offering additional amounts for each tranche, which included an increase of 550 million dirhams for sukuks with a return of 3.49% due in October 2027, bringing the total outstanding value of this tranche to 2.2 billion dirhams, and an increase of 550 million dirhams for sukuks with a return of 3.779% due in February. 2033, bringing the total outstanding value of this segment to 1.1 billion dirhams.

The two issuances of the UAE government’s Treasury Sukuk program aim to continue supporting the development of the dirham-denominated yield curve, strengthen the local fixed income market, and expand access to investment tools that are compatible with the provisions of Islamic Sharia, have high credit ratings, and attract investors at the regional and international levels.

With the inclusion of these two additional issuances, the total value of outstanding UAE government sukuk listed on Nasdaq Dubai increased to $7.5 billion, reflecting the continued momentum of the treasury sukuk programme. The total value of the outstanding sukuk listed on Nasdaq Dubai amounted to about $99.4 billion.

This listing reinforces the growing role of dirham-denominated Treasury bonds within the local capital markets, and their importance in supporting efforts to develop the government debt instruments market, and enhancing the presence of the UAE’s sovereign issues on Nasdaq Dubai.

Al-Husseini stressed that the inclusion of increases in the issuance of Islamic treasury bonds denominated in the UAE dirham on Nasdaq Dubai comes from the Ministry of Finance’s keenness to continue supporting the treasury sukuk program for the UAE government, and to consolidate its role within an efficient and flexible national financial system.

He said that this step comes within the framework of the Ministry’s approach to developing government debt instruments in the local currency, which contributes to strengthening the dirham-denominated yield curve, expanding the investor base, and supporting the construction of a deeper and more diversified fixed income instruments market.

Al-Husseini explained that these increases on existing issues reflect the strength of the UAE’s credit position, and the firm confidence in the efficiency of its financial system and its ability to provide reliable government tools that contribute to the stability of the markets and enhance their liquidity.

He pointed out that the program continues to contribute to the development of financial tools that are compatible with best practices, and in line with the state’s directions in building an advanced financial structure that supports financial stability, stressing that the Ministry of Finance will continue to enhance the efficiency of managing government issuances and consolidate the state’s position as a leading financial center.

For his part, Chairman of the Board of Directors of Nasdaq Dubai, Abdul Wahed Al Fahim, said: “The UAE continues to consolidate its position as a leading model in the development of capital markets, as the strong demand for the Treasury Sukuk program reflects the country’s deep-rooted confidence among investors in the strength of its economy and the sustainability of its long-term development vision. This program also contributes to strengthening the dirham-denominated yield curve and consolidating the country’s position as a reliable and attractive destination for investors from all over the world.”

In turn, the CEO of Nasdaq Dubai and the Dubai Financial Market, Hamed Ali, said: “The latest treasury bond issuances by the UAE government reflect the strength of the Islamic finance system in the country and its pivotal role in global capital markets. With the growing demand from investors for these tools, Nasdaq Dubai continues to provide an integrated environment that contributes to facilitating access to markets and enhances efforts to develop capital markets in the region.”