The United Arab Emirates has successfully raised AED1.1 billion (approximately $300 million) through its inaugural auction of treasury bonds denominated in UAE dirhams, coinciding with the onset of the US-Israel-Iran conflict.

This auction saw significant interest from primary dealers for the treasury bonds set to mature in September 2027 and January 2031. Total bids reached AED4.9 billion, reflecting an oversubscription rate of 4.4 times, as reported by the state news agency Wam, citing the finance ministry.

The yield to maturity, or expected return, is 3.73 percent for the bonds maturing in September 2027 and 3.85 percent for those maturing in January 2031.

The finance ministry noted that this demand highlights investors’ ongoing confidence in the UAE’s financial industry and its robust economy amid prevailing market volatility.

The yields achieved indicate a relatively narrow spread of up to 16 basis points above similar US Treasury securities at the time of issuance.

The bonds are set to be listed on Nasdaq Dubai, enhancing accessibility for investors in the secondary market. The Central Bank of the UAE serves as the issuing and payment agent.

In February, Abu Dhabi’s dual-tranche US dollar bond sale enjoyed an order book that surpassed $11 billion.

In October, the UAE cabinet approved a federal budget for 2026, projecting revenues of AED92.4 billion with corresponding balanced expenditures.

Additionally, the UAE announced a federal allocation of AED900 billion for its budget cycle spanning 2027 to 2029.