The Federal Decree No. (9) of 2018 on public debt aims to enable the federal government to issue sovereign bonds and assist the banking sector to promptly comply with international liquidity rules. Additionally, the law will allow local banks to purchase government bonds in dirhams or foreign currencies, which will enable compliance to Basel III requirements. The proposed sovereign bonds will support the UAE Central Bank in its role in managing liquidity within the banking sector.
The public debt law identifies the general rules for issuing and managing public debt, while a Public Debt Management Office will be established at the Ministry of Finance. The Public Debt Management Office will report directly to the Minister of Finance. The office will also work closely with the UAE Central Bank on the issuance and sale of government bonds, treasury bills as well as other public debt instruments. The local governments would establish a public debt office in case of issuance of local public debt instruments. The terms of reference of these offices shall be similar to those of the Public Debt Office issued by this law.
View the text of the law