UAE's top advisory council passed new public debt law and also approved federal budget for the year 2011. The budget also contains an expenditure of Dh41 billion. It is said that the debt legislation is a key step towards the issuance of country's first sovereign bond which will also help to revive local currency debt market.
The bill on new public law provides legal framework for creating a government bond market in the country with public debt instruments traded on one or more of the UAE's three financial markets.
The nutshell is that the country needed not just to plan for a sovereign bond issue but also to revive the local currency debt market. Besides it is also a positive start and it is expected that it will help develop a local bond market in the region.
Hi Abdul,
Will it have any affect on foreign investments too? Or its just to encourage internal societies or people to start investing in local market.
I think that the new public debt law will surly affect foreign investment as well as encourage the investment in local market. You can further read in detail from the following site.
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