The government of the UAE will further discuss its plan to introduce a law allowing public debt issues at the federal level, and it feels no pressure to issue bonds despite a budget deficit, Obaid Humaid Al Tayer, Minister of State for Financial Affairs, said on Tuesday.
“The law is still under discussion within the government. We are not under pressure to issue any bonds,” Al Tayer said in a brief interview. “We are in no need to finance anything. We will be able to bridge the (budget) gap with our own resources.”
Al Tayer did not say when he expected the long-awaited debt law to be signed, but added that discussions were likely to resume after the summer period.
The UAE’s top advisory council passed the public debt bill in December 2010, aiming to establish a local debt market in the country. The legislation is still awaiting cabinet approval and the presidential signature which it needs to become law.
A senior finance ministry official said in February that he expected the UAE’s first-ever federal sovereign bond issue to be around $1 billion, and that it would take place after the public debt bill was approved. Federal government bonds would be issued at intervals to help finance infrastructure projects.