No UAE bonds for two years

UAE has restructured $25bn worth of debt in its flagship Dubai World conglomerate. A sovereign bond issue was expected to help the government fund its infrastructure projects

Contrary to all market expectations, the plans to issue the first federal sovereign bond have been deferred for at least two years. This was confirmed by the country's Finance Minister Sheikh Hamdan bin Rashid Al Maktoum.

When asked specifically whether UAE had any plans to issue a bond this year or in 2013, Sheikh Hamdan, who is also a Deputy Ruler of Dubai, categorically said: “No, we don’t have.” Readers would note that Dubai’s state-linked companies, currently going through restructuring, are said to be in good shape. “They are alright. We have no problem with the companies, everything is done,” Sheikh Hamdan added.

Dubai's economy has been steadily recovering from the debt crisis. The emirate has restructured $25bn worth of debt in its flagship Dubai World conglomerate. A sovereign bond issue was expected to help the government fund its infrastructure projects.