Skip to main content

UAE meets $400 million target in first bond auction

The Emirati government decided to sell bonds in dirhams to boost the local banking sector and diversify financially.
n Emirati man follows the market's movement at the Dubai Financial Market.

The United Arab Emirates released today the results of its first bond auction in dirhams. 

The Ministry of Finance and the Central Bank of the UAE raised the equivalent of $408 million in the local currency. They sold equal amounts of two- and three-year bonds, the Ministry of Finance said in a statement. 

Why it matters: The UAE decided last month to sell treasury bonds in dirhams in a bid to bolster the Emirati banking sector and diversify the government’s financial assets. 

Treasury bonds are debt securities that in this case represent the UAE government’s obligation to repay the buyer for the designated amount plus interest. States often sell such bonds as a means to finance their expenses. 

The UAE had never sold bonds until last year when they began selling bonds priced in US dollars. 

The Gulf state is seeking to diversify financially and reduce its dependence on oil exports. Relatedly, the UAE decided in January to implement a corporate tax in a bid to boost government revenue. 

The first round of the bond sale was successful. The Ministry of Finance targeted sales worth $400 million at the auction. 

What’s next: The next bond sale will take place on June 20. The ministry also said today that the bonds will “soon” be listed for sale on the Nasdaq Dubai stock exchange. 

Join hundreds of Middle East professionals with Al-Monitor PRO.

Business and policy professionals use PRO to monitor the regional economy and improve their reports, memos and presentations. Try it for free and cancel anytime.

Free

The Middle East's Best Newsletters

Join over 50,000 readers who access our journalists dedicated newsletters, covering the top political, security, business and tech issues across the region each week.
Delivered straight to your inbox.

Free

What's included:
Our Expertise

Free newsletters available:

  • The Takeaway & Week in Review
  • Middle East Minute (AM)
  • Daily Briefing (PM)
  • Business & Tech Briefing
  • Security Briefing
  • Gulf Briefing
  • Israel Briefing
  • Palestine Briefing
  • Turkey Briefing
  • Iraq Briefing
Expert

Premium Membership

Join the Middle East's most notable experts for premium memos, trend reports, live video Q&A, and intimate in-person events, each detailing exclusive insights on business and geopolitical trends shaping the region.

$25.00 / month
billed annually

Become Member Start with 1-week free trial

We also offer team plans. Please send an email to pro.support@al-monitor.com and we'll onboard your team.

What's included:
Our Expertise AI-driven

Memos - premium analytical writing: actionable insights on markets and geopolitics.

Live Video Q&A - Hear from our top journalists and regional experts.

Special Events - Intimate in-person events with business & political VIPs.

Trend Reports - Deep dive analysis on market updates.

All premium Industry Newsletters - Monitor the Middle East's most important industries. Prioritize your target industries for weekly review:

  • Capital Markets & Private Equity
  • Venture Capital & Startups
  • Green Energy
  • Supply Chain
  • Sustainable Development
  • Leading Edge Technology
  • Oil & Gas
  • Real Estate & Construction
  • Banking

Start your PRO membership today.

Join the Middle East's top business and policy professionals to access exclusive PRO insights today.

Join Al-Monitor PRO Start with 1-week free trial