The UAE sold AED 1.1 billion ($299.5 million ) of bonds under the sukuk program for Q2 2024, the finance ministry said on Wednesday.

The Islamic treasury bonds carried a spread of 4.57% on the three-year tranche and 4.44% on the five-year tranche, representing a 5 basis points price tightening below US Treasuries with similar maturities.

The issuance was part of the government's Shariah-compliant treasury bonds programme

The issuance was oversubscribed nearly nine times and received bids worth AED9.81 billion for the three-year and five-year tranches, from eight primary dealers, a statement said.

Islamic T-Sukuk are asset-backed Islamic Sharia-compliant financial instruments whose profit and payment at maturity mainly rely on the performance of the issuer’s assets.

The Islamic T-Sukuk issuance program aims to build the UAE dirham-denominated yield curve, provide safe investment alternatives for investors, strengthen the local debt capital market, and support sustainable economic growth. The oil-rich country is seeking to reduce dependence on energy revenues.

(Writing by Brinda Darasha; editing by Seban Scaria)