Middle East

UAE issues new law to develop federal bond market

UAE's Minister of Finance says new public debt legislation will 'will have substantial returns' for the country

The UAE on Saturday issued a new law permitting the federal government to begin issuing sovereign debt.

Abu Dhabi and Dubai already sell bonds in international markets but the new legislation will enable the government to help benefit other emirates as federal bonds would carry higher credit ratings than those emirates could achieve individually.

According to state news agency WAM, banks in the UAE will be able to buy government bonds in dirhams or foreign currencies, while the central bank will use the bonds to help manage the interbank money market, and the bonds will support the creation of a secondary market in government debt.READ ARTICLE by ARABIAN BUSINESS