The UAE federal government and individual emirates are expected to issue a combined $18 billion in local currency loans this year as part of efforts to build a domestic debt yield curve, repay maturing obligations and partly fund budget shortfalls, global ratings firm S&P said.
Specifically, Abu Dhabi and the UAE federal government will issue more than $8 billion of local currency debt to support the building of a domestic yield curve and fund fiscal deficits. “Of the three emirates we rate — Abu Dhabi, Ras Al Khaimah, and Sharjah — we expect that only Sharjah will issue debt to meet a fiscal shortfall, while the others will maintain their surplus position,” S&P said in a research note published Monday.
