UAE to ratify a law to launch its first ever sovereign bond

Abu Dhabi raised $3 billion in late March as part of a $10-billion bond programme planned over the next two years for general government spending

The United Arab Emirates will ratify a law in at least 4-6 weeks to launch its first ever sovereign bond, which would help to develop the local bond market, the Central Bank governor said.

Sultan Bin Nasser Al Suwaidi also said the UAE government will guarantee debt instruments issued by banks and the issue will be discussed at the Federal National Council, which is meeting today.

Abu Dhabi raised $3 billion in late March as part of a $10-billion bond programme planned over the next two years for general government spending. Dubai sold $10 billion of bonds to the UAE Central Bank in February and is planning to raise another $10 billion to support state-linked companies.