A strategy to manage how the UAE will issue federal bonds will be agreed this year, a senior Ministry of Finance official says.
The policy is expected to precede the final approval of a public debt law, paving the way for the country's first Federal Government bonds.
Borrowing would be co-ordinated by a federal debt unit being set up by the ministry.
"We are co-ordinating with the Central Bank on the general strategies of this unit as well as its policies," said Younis al Khouri, the Director General of the Ministry of Finance.
Setting up systems for trading securities and assessing investor demand are among the technical work required under the strategy, say officials. The Government has long been considering the sale of bonds to secure financing for government departments and provide a benchmark for private companies planning bond sales of their own.
Abu Dhabi, Dubai, Ras al Khaimah and other emirates have all sold debt to international investors in the past but the Federal Government has yet to do so.
"The law is taking its own jurisdiction and process. We are awaiting for its final approval," Mr al Khouri said. The Federal National Council, the country's top consultative body, approved the public debt law in December. But it now required final signing from each of the rulers of the seven emirates, he said.
In a bid to better regulate government debt, plans were unveiled in 2009 for the public debt unit, which will oversee all sovereign securities including bond issuances. It is also expected to help boost investor transparency about public debt, while consolidating debt at a central level. At the moment, levels of indebtedness are uneven across emirates.
Dubai is negotiating a debt hangover from the global financial crisis after borrowing heavily for many years in an effort to expand its economy.
"Dubai has regained market access, but the cost of borrowing remains high, reflecting the rollover needs of the total of US$31 billion [Dh113.82bn] falling due in 2011 and 2012 and concerns about the solvency of restructured government-related entities," the Institute of International Finance, a global association of financial institutions, said in a report released yesterday.
Borrowing at a federal level was likely to help to reduce the cost of funding public debt, say analysts.
Excessive borrowing would be controlled by the federal legislation. It prescribes a limitation on government debt to 25 per cent of GDP or Dh200bn, whichever is lower.
tarnold@thenational.ae
Results
2.30pm: Handicap (PA) Dh40,000 1,700m; Winner: AF Mezmar, Adam McLean (jockey), Ernst Oertel (trainer).
3pm: Maiden (PA) Dh40,000 2,000m; Winner: AF Ajwad, Tadhg O’Shea, Ernst Oertel.
3.30pm: Handicap (PA) Dh40,000 1,200m; Winner: Gold Silver, Sam Hitchcott, Ibrahim Aseel.
4pm: Maiden (PA) Dh40,000 1,000m; Winner: Atrash, Richard Mullen, Ana Mendez.
4.30pm: Gulf Cup Prestige (PA) Dh150,000 1,700m; Winner: AF Momtaz, Saif Al Balushi, Musabah Al Muhairi.
5pm: Handicap (TB) Dh40,000 1,200m; Winner: Al Mushtashar, Richard Mullen, Satish Seemar.
'Peninsula'
Stars: Gang Dong-won, Lee Jung-hyun, Lee Ra
Director: Yeon Sang-ho
Rating: 2/5
The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
Coming soon
Torno Subito by Massimo Bottura
When the W Dubai – The Palm hotel opens at the end of this year, one of the highlights will be Massimo Bottura’s new restaurant, Torno Subito, which promises “to take guests on a journey back to 1960s Italy”. It is the three Michelinstarred chef’s first venture in Dubai and should be every bit as ambitious as you would expect from the man whose restaurant in Italy, Osteria Francescana, was crowned number one in this year’s list of the World’s 50 Best Restaurants.
Akira Back Dubai
Another exciting opening at the W Dubai – The Palm hotel is South Korean chef Akira Back’s new restaurant, which will continue to showcase some of the finest Asian food in the world. Back, whose Seoul restaurant, Dosa, won a Michelin star last year, describes his menu as, “an innovative Japanese cuisine prepared with a Korean accent”.
Dinner by Heston Blumenthal
The highly experimental chef, whose dishes are as much about spectacle as taste, opens his first restaurant in Dubai next year. Housed at The Royal Atlantis Resort & Residences, Dinner by Heston Blumenthal will feature contemporary twists on recipes that date back to the 1300s, including goats’ milk cheesecake. Always remember with a Blumenthal dish: nothing is quite as it seems.