Sunday 3 May 2009

Bond issues to help boost UAE economy

Sovereign bond issues announced recently in the UAE will offset a sharp decline in its income and mitigate the impact of the global financial crisis on the domestic economy, according to experts.

International rating agencies have already given high marks to the Abu Dhabi bond programme, indicating the emirate still enjoys a strong financial position despite reports about a steep fall in its overseas investments.

Besides that fall, Abu Dhabi's $10-billion (Dh37bn) bond plan will also cushion the sharp drop in its oil revenues and a plunge in the foreign assets of the UAE Central Bank following large withdrawals by the country's cash-strapped banks.

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