Today, Wednesday, the UAE, represented by the Ministry of Finance as the issuer, announced the issuance of T-Sukuk Islamic treasury sukuk denominated in the local currency, dirhams, with a benchmark auction size of up to 1.1 billion dirhams.
The ministry cooperates with the Central Bank of the United Arab Emirates in its capacity as the issuance and payment agent for its issuance, according to a press release.
The T-Sukuk Islamic treasury sukuk, which is denominated in the local currency dirham, includes tranches with a duration of two, three, and five years initially, and will be followed by the issuance of a 10-year tranche at a later time, and all of them will supplement efforts in building a bond market in the local currency, and developing the yield curve. in the medium term as a whole.
The Ministry of Finance and the Central Bank of the United Arab Emirates are working with all concerned government agencies and international financial bodies to ensure the adoption and application of international best practices in structuring these sukuk, in order to allow for further development of Islamic finance in the country, and to enhance the country's vision as an international center for the Islamic economy.
The structuring of Islamic sukuk has been approved by the Supreme Sharia Authority of the UAE Central Bank, which in turn aims to standardize and unify the practices of Islamic financial institutions, to be compatible with internationally recognized Sharia standards and best practices, through cooperation with the concerned authorities.
The Ministry of Finance published the main symbol for the agent banks, which include 8 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 of treasury bonds. Islamic T-Sukuk is tasked with developing the secondary market.
