Fujairah: There are no current plans for the Government of Fujairah to raise funds through financial institutions, according to a top official from the emirate.
Mohammed O. Bin Majed Al Aleeli, Director General of Fujairah’s Department of Industry & Economy, told Gulf News on Tuesday, the government intends to use existing revenue streams to fund projects in the pipeline. He spoke to Gulf News on the sidelines of the Gulf Intelligence Energy Markets Forum 2014 in Fujairah on Tuesday.
“I wouldn’t think they would go for bonds or other methods to raise money,” he said.
Al Aleeli’s comments come at time when other emirates and state-owned companies are looking to raise capital either through bonds, loans on an initial public offering (IPO).
The Government of Sharjah earlier this month issued its first sukuk, a $750 million (Dh2.8 billion), 10-year sukuk Al Ijara issuance priced at 3.764 per cent.
While Al Aleeli said there were no plans to raise external capital he declined to rule out a change in strategy from the Government of Fujairah.
“If there are certain projects, then they might go to the financial institutions,” he said.
He added that the Government of Fujairah expects the emirate’s gross domestic product (GDP) to grow in line with the UAE’s this year, which the International Monetary Fund (IMF) forecast in April to grow by 4.4 per cent.
