Dubai: New watchdog for debt decision making

24 May 2010

(MENAFN) Dubai plans to set up a debt management office to address the weaknesses in the emirate’s financial system and centralize debt decision making, Emirates Business 24/7 reported.

The office is designated to co-ordinate the raising of debt for government-related entities, said Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Supreme Fiscal Committee and Chairman of Emirates Group.

On the federal level, urgent steps are being taken to tackle the issues and gaps in UAE’s legal and regulatory infrastructure, Al Maktoum said. The government is set to issue a public debt management law later this year.
Following this, the UAE will set up a debt management office to co-ordinate the raising of debt for government-related entities, and a similar debt management unit is planned to be set up in Dubai to centralize debt decision making, Al Maktoum said.

He explained that the Supreme Fiscal Committee, which oversees Dubai’s fiscal policies, is setting up a comprehensive program to address vulnerabilities in the financial system.

The Dubai Government’s restructuring proposal for Dubai World’s debt was widely welcomed by local and international markets, Al Maktoum said, adding that the proposal demonstrates Dubai’s commitment to ensuring the success of government-related entities while at the same time treating both foreign and local creditors equitably and fairly.