The UAE is building bonds for the future – The National

The UAE is building bonds for the future – The National

The UAE’s Finance Ministry on Wednesday announced the launch of dirham-denominated treasury bonds.

The initiative is expected to build a local currency bond market and raise alternative sources of funding for the government. But the move is particularly significant in the broader context of the UAE’s continued efforts to build a post-pandemic economy that is robust, diversified and durable.

Bonds worth Dh1.5 billion ($400 million) will initially be issued in two, three and five-year tenures. This is an understandably modest beginning for dirham debt markets compared to what is on offer in US dollars, the world’s de facto currency, whether by individual emirates or other sovereign nations around the globe, and therefore can attract a wider pool of investors.