No UAE government bond law before end-year -official

Kuwait City: A UAE law allowing the federal government to issue bonds is still being prepared and is unlikely to be passed this year, Minister of State for Financial Affairs Obaid Humaid Al Tayer told Reuters on Tuesday.

“It is still in the draft stages. I don’t expect it to be finalised before the end of the year,” Al Tayer said on the sidelines of a financial conference in Kuwait. While individual emirates in the UAE issue bonds, legislation would be needed to permit the federal government to do so — a step which could help to develop the country’s bond market and cover any future budget deficits due to low oil prices. However, the government has been discussing the law for years without producing a final version.

Al Tayer headed the 38th Annual Meeting of the Board of Governors of the Arab Monetary Fund (AMF) on Tuesday. This meeting was held alongside the annual meetings of Arab Financial Institutions, which are currently taking place in Kuwait. The meeting’s agenda included a number of discussions which covered the AMF’s annual report, the consolidated financial statements and audited accounts for 2014, as well as an overview of the AMF’s 2015-2020 strategic plan and corporate governance reports. In addition, the Fund appointed auditors for 2015.

The AMF’s headquarters are located in Abu Dhabi. Since its establishment, the Fund has provided 170 loans worth $7.6 billion US Dollars. 14 member states of the Fund have benefited from these loans. The net profit amounted to $112.1 million US Dollars in 2014.

Commenting on the meeting, Al Tayer emphasised the UAE’s commitment to supporting joint Arab action, which reflects the guidance and vision of the UAE’s wise leadership. The UAE has also helped to create an appropriate environment for economic and social development, either directly or through joint Arab financial institutions. He also stressed the importance for Arab financial institutions, particularly the AMF, to continue progressing economic and social development goals, as well as strengthening financial and economic cooperation between Arab countries, in order to better serve Arab citizens.