Latest news with #Dirham-denominated
Hi Dubai
02-05-2025
- Business
- Hi Dubai
UAE's Public Debt Policy Boosts Investor Confidence, Separate from Budget Financing: Ministry of Finance
The UAE's public debt strategy is aimed at strengthening investor confidence and fostering financial market development—not funding government spending—according to Younis Haji Al Khoori, Undersecretary of the Ministry of Finance. Speaking at the second annual Financial Media Forum in Dubai, Al Khoori emphasised that recent bond issuances, including dollar- and dirham-denominated instruments, are not linked to budget financing. Instead, he said, they are part of a broader plan to build a robust Dirham-denominated yield curve and support the country's long-term financial infrastructure. 'The proceeds from these issuances are strategically invested in financial assets that match the bonds' profiles,' Al Khoori noted, adding that this approach ensures fiscal stability and policy sustainability. He confirmed that none of the funds raised have been used to support the general budget. Al Khoori also addressed concerns over fluctuating global oil prices, calling the recent volatility temporary. He noted that prices have since returned to early-year levels and reiterated the UAE's readiness to manage such challenges through prudent financial reserve allocations. This proactive fiscal management, he said, has enabled the country to maintain a balanced budget and post consistent surpluses in recent periods. Regarding future bond activity, Al Khoori confirmed that all Cabinet-approved dollar-denominated bond issuances have been executed, with any new offerings to be announced following the required legislative processes. News Source: Emirates News Agency
Hi Dubai
24-04-2025
- Business
- Hi Dubai
Ministry of Finance Raises AED 1.1 Billion in Oversubscribed Islamic T-Sukuk Auction
The Ministry of Finance (MoF), in collaboration with the Central Bank of the UAE (CBUAE), has successfully completed the latest auction of UAE Dirham-denominated Islamic Treasury Sukuk (T-Sukuk), raising AED 1.1 billion. This marks another milestone in the 2025 T-Sukuk issuance program. The auction drew strong interest from eight primary dealers, receiving total bids of AED 6.12 billion—oversubscribed by 5.6 times. This robust demand signals continued investor confidence in the UAE's economic fundamentals and its Islamic finance framework. The issuance was split across two tranches maturing in May 2027 and September 2029, offering competitive yields of 3.83% and 3.93%, respectively. These yields reflect tight spreads of 5 and zero basis points over comparable US Treasuries, highlighting the attractiveness and market-driven pricing of the instruments. The T-Sukuk program is a key component of the UAE's broader strategy to strengthen the local debt capital market. It plays a vital role in building a Dirham-denominated yield curve, while offering secure, Sharia-compliant investment options to a diverse investor base. By deepening the local bond market and enhancing financial infrastructure, the program also supports the UAE's long-term economic growth and fiscal sustainability goals. News Source: Emirates News Agency
