The UAE has reaffirmed that proceeds from its sovereign bond issuances are not used to finance the general budget, according to Younis Haji Al Khoori, Undersecretary at the Ministry of Finance.
Speaking at the second annual Financial Media Forum in Dubai, Al Khoori said the country’s debt management framework operates independently of expenditure needs and is designed to support market development and fiscal transparency. He noted that issuances of both dollar- and dirham-denominated bonds are aimed at building a local yield curve rather than funding operational spending.
The UAE has invested proceeds from bond sales into financial assets aligned with the maturity and risk characteristics of the instruments, Al Khoori added. He said the strategy is part of broader fiscal stability and policy sustainability efforts.
Al Khoori noted that dollar-denominated bond issuance quotas authorised by the Cabinet have been fully used, and any future issuance would follow formal legislative approvals.
He also addressed recent fluctuations in global oil prices, calling them temporary and stating that prices have returned to early-year levels. He said the UAE has continued to allocate reserves to manage volatility, contributing to budget balance and fiscal surpluses in recent years.
The UAE issued its first federal bonds in 2021 and has since built a multi-tranche yield curve in both hard currency and local currency.
