No UAE Government Bond Law Before Year End -Official

A United Arab Emirates law allowing the federal government to issue bonds is still being prepared and is unlikely to be passed this year, a senior UAE official 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,” Minister of State for Finance Obaid Humaid 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.