The sukuk will be offered at a record auction size of up to 1.1 billion dirhams ($299.6 million).
Today, Wednesday, the UAE Ministry of Finance announced the issuance of Islamic treasury sukuk denominated in UAE dirhams under the name T-Sukuk.
According to Mohammed bin Hadi al-Hussaini, UAE Minister of State for Financial Affairs, “The UAE is keen to develop the Islamic economy and consolidate the establishment of an investment structure to lead the Islamic economy as one of the pillars of the local economy.”
The Emirates News Agency (WAM) quoted Al-Husseini as saying that the ministry is cooperating with partners, led by the Central Bank of the United Arab Emirates, to attract investments and employ them in the channels of the Islamic economy.
The sukuk will be offered at a record auction size of 1.1 billion dirhams ($299.6 million).
The agency stated that the Islamic treasury sukuk includes tranches with a duration of between two and three years, and five years initially, and will be followed by the issuance of a ten-year tranche at a later time.
The UAE has already sold ordinary treasury bonds denominated in its local currency, raising 1.5 billion dirhams in May last year, after similar sales by other Gulf states.
WAM also quoted Khaled Mohamed Balama, Governor of the UAE Central Bank, as saying that the importance of issuing Islamic treasury sukuk comes “in developing the local sukuk markets.
Balaama added that the new sukuk works to “diversify financing resources and strengthen the infrastructure to support investment options and alternatives that are compatible with the provisions of Islamic Sharia, thus contributing to the development of the Islamic financial sector, improving the investment environment, and consolidating the UAE’s position as a leading global center in the Islamic finance sector.”
The Ministry of Finance published the main symbol for the agent banks for the new sukuk, and they include eight banks: Abu Dhabi Islamic Bank, Dubai Islamic Bank, Abu Dhabi Commercial Bank, Emirates NBD, First Abu Dhabi Bank, Mashreq Bank, HSBC Bank, and Standard Chartered as the main distributors for the participants in the initial auction. for new instruments.
