UAE's Public Debt Policy Boosts Investor Confidence, Separate from Budget Financing: Ministry of Finance
The UAE's public debt strategy is aimed at strengthening investor confidence and fostering financial market development—not funding government spending—according to Younis Haji Al Khoori, Undersecretary of the Ministry of Finance.
Speaking at the second annual Financial Media Forum in Dubai, Al Khoori emphasised that recent bond issuances, including dollar- and dirham-denominated instruments, are not linked to budget financing. Instead, he said, they are part of a broader plan to build a robust Dirham-denominated yield curve and support the country's long-term financial infrastructure. 'The proceeds from these issuances are strategically invested in financial assets that match the bonds' profiles,'
Al Khoori noted, adding that this approach ensures fiscal stability and policy sustainability. He confirmed that none of the funds raised have been used to support the general budget.
Al Khoori also addressed concerns over fluctuating global oil prices, calling the recent volatility temporary. He noted that prices have since returned to early-year levels and reiterated the UAE's readiness to manage such challenges through prudent financial reserve allocations.
This proactive fiscal management, he said, has enabled the country to maintain a balanced budget and post consistent surpluses in recent periods.
Regarding future bond activity, Al Khoori confirmed that all Cabinet-approved dollar-denominated bond issuances have been executed, with any new offerings to be announced following the required legislative processes.
News Source: Emirates News Agency
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