Abu Dhabi: The Ministry of Finance in the UAE is advancing its plans to issue bonds in UAE dirham as part of efforts to develop the local debt market, according to Younis Haji AlKhoori, Under-Secretary of the Ministry of Finance. This strategy aims to build and enhance the yield curve for the currency.
According to Emirates News Agency, AlKhoori stated that this initiative forms part of the ministry's broader efforts to increase liquidity in the local debt market, thereby supporting financial stability and strengthening the country's investment environment. He noted that, for this year, there are no plans to issue dollar-denominated bonds. The ministry continues to monitor financial markets to make informed decisions in the future, in coordination with relevant authorities. Any international issuances would require prior approval from the UAE Cabinet.
AlKhoori also addressed the public debt-to-GDP ratio, explaining that calculating this percentage requires consolidating debt across local emirates. He affirmed that the UAE's debt levels remain within sustainable limits, aligning with global best financial practices and reflecting the strength and resilience of the UAE economy.
Regarding the 2025 budget, AlKhoori mentioned that it aligns with the current strategic cycle, which concludes at the end of the next year. The ministry is collaborating closely with partners to ensure sound financial planning that aligns with the government's strategic plans through 2027. He emphasized that the new budget prioritizes enhancing essential government services, particularly those impacting citizens and residents, including education, healthcare, infrastructure, and legislation.