By Bernd Debusmann Jr
In 2018, the UAE issued a law which allows the country's federal government to begin issuing sovereign debt
The UAE plans to sell federal bonds for the first time in 2020, according to Ministry of Finance undersecretary Younis Haji al Khoori.
In 2018, the UAE issued a law which allows the country’s federal government to begin issuing sovereign debt, which were traditionally sold by the individual emirates.
In an interview with Al Arabiya TV station, al Khoori said that the bonds would be “for the achievement of certain goals for the UAE, and the proceeds are not used to fund the budget, except in certain capital projects.”
“Right now, we are preparing for a credit evaluation for the country, and after the evaluation we will meet with banks to choose some, either local or international, to help the ministry with the first issuance and we expect the federal issuances to start in 2020,” he added.
Earlier in 2019, the state-owned Emirates Development Bank sold $750 million in bonds, becoming the first government entity to tap international capital markets.