FINANCIAL NEWS

UAE to approve debt law at USD 22bn in 2016

10 Feb 2016

(MENAFN) The UAE predicts to ratify a law by the end of this current year which will permit the government to issue bonds, after which the country would issue USD 22bn to USD 27bn of debt.

Accordingly, the law is expected to be confirmed in six to nine months, and the seven individual emirates in the UAE issue bonds which have been in preparation for years.

However, a drop in oil prices since 2014 pushed state finances into shortage, issuing bonds at a federal level would give the UAE another fund-raising option.

In addition, Abu Dhabi expects to cover part of its deficits this year and 2017 by drawing down assets, and the Abu Dhabi Investment Authority assets would fall to USD 475bn.

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