iPhone | iPad
Android
Huawei
Sister of Congress leader Rahul Gandhi comes to her brother's defence in tweet alleging his disqualification is a ruse to divert attention from Indian billionaire embroiled in financial malpractice accusations
KT APPDOWNLOAD
UAE: New debt policy to stimulate financial sector
Dubai - The introduction of the securities should begin the development of a secondary market for local currency debt.
A Public Debt Law allowing the issuance of federal bonds was passed in 2018. — Wam
The public debt strategy unveiled by the UAE on Sunday will have a significant impact on elevating the nation’s global competitiveness standing and improving macroeconomic management, said Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, and Minister of Finance.
Sheikh Hamdan said on Monday that the debt strategy, which seeks to develop the UAE’s market for local currency bonds, would stimulate the country’s financial and banking sector; provide financing alternatives for government development projects; and establish a bond market in the local currency.
“The strategy supports the UAE’s efforts to attain a competitive economy, and enhance financial planning for the federal government,” said Sheikh Hamdan.
He said the move also helps lay the foundations for public debt operations management, and achieve financial sustainability – by enhancing investor confidence in the national economy.
“This contributes to strengthening the country's standing in global competitiveness indices to be the best country in the world by the UAE Centennial 2071,” Sheikh Hamdan said.
The UAE government does not currently issue debt, but individual emirates do tap bond markets. Over the past two years, the federal government has been putting the infrastructure in place to issue debt denominated in dirhams.
A Public Debt Law allowing the issuance of federal bonds was passed in 2018. In December, the Central Bank of the UAE said it would begin issuing dirham-denominated securities known as M-Bills in January.
Global ratings agency S&P Global said that the introduction of the securities should begin the development of a secondary market for local currency debt, which could result in the creation of a risk-free pricing benchmark for dirham-denominated debt over the longer term.
According to debt market experts, a local currency bond market goes a long way in strengthening the UAE’s financial markets, increasing monetary policy options and attracting longer term portfolio flows, all of which support the very important efforts to mobilise private capital and build a more resilient and diversified economy.
—issacjohn@khaleejtimes.com
More news from
Russia will respond to Ukraine receiving depleted uranium ammunition from the West with deployment of similar weapons of its own
The Japanese Horse of the Year took nearly a second off the course record as he finished the 2,410 metres demolition job in 2 minutes 25.65 seconds
Derma Sotogake, son of former top sprinter Mind Your Biscuits, demonstrated why he can be the first horse to complete the UAE-American Derby double
The Dubai Ruler was accompanied at the races by his son Sheikh Hamdan
Trainer Jeremy O’Dwyer all praise for the experienced jockey who won his second race of the evening
Gordon E. Moore could be credited for bringing laptop computers to hundreds of millions of people
The financial economy built atop low interest rates could not cope with the Fed’s change of direction