Economists and businesspersons are upbeat about the launching of US$20 billion long term bond programme by Dubai Government, saying the move reflects the UAE economy’s high-level of credibility and refutes the doubts surrounding the government’s ability to live up to its financial commitments.
The Federal National Council Speaker and Chief Executive of Mashreqbank HE Abdul Aziz Al Ghurair said, “the world should know there is confidence in the UAE leadership and that the country is confident about its economy and financial institutions. The world can deal with the UAE with the same mentality as it used to do six months ago”.
He added that the Dubai government’s move to launch the long term bond programme coincides with the step taken by the UAE Ministry of Finance to transfer AED50 billion to the banks and injection of Abu Dhabi government of AED16 billion in its banks, as well as success of Dubai Bourse to refinance the loan worth $2.5 billion, reiterating that “these are positive indications to the sceptics about the credibility and strength of the UAE economy”.
Hani Al Hamili, general secretary of the Dubai Economic Council, said the new initiative is a step towards bolstering flow of the local liquidity to meet all the financial commitments.
Sultan Butti bin Mijrin, director general of the Lands and Properties Department, said the Dubai government’s move “comes in proper time as it will revive the emirate’s economy.
Mohammed Ali Al Hashimi, chief executive of Za’beel Investment Company, said the launch of the bond programme “is a sound decision amid circumstance being witnessed by the market and reserve of the banks to offer the financial facilitations”.
Engineer Hammed Bu Amim, director general of the Dubai Chamber of Commerce and Industry, said the launch of bond programme “is an excellent step in the real sense of the word as it will boost confidence of local and foreign investors”.
Sheikh Nasser Al Mualla, chief executive of Bank of Umm Al Qaiwain, said the launch of bond programme by Dubai government and gesture of the Central Bank to finance half of the bond programme “is a clear message to the sceptics who try to divide the UAE into seven emirates. These bonds show the UAE is one country under one government, which operates in a dynamic consonance to face challenges”.
Nabil Al Yusuf, director general of Dubai Executive Office, said the decision taken by Vice President and Prime Minister of UAE and Ruler of Dubai HH Sheikh Mohammed bin Rashid Al Maktoum, would boost confidence in the UAE economy in general and the Dubai emirate economy in particular, adding that the economies of the developed and developing countries incurred losses due to the World Financial Crisis. Hence, the Dubai government has decided to take pre-emptive measures to avert potential adverse effects on the economy.
