UAE. The central bank of the UAE probably will be among the biggest buyers of more bonds being sold by the Dubai government, Barclays Capital said.
The central bank may subscribe alongside a few Dubai-based banks, Barclays Capital economist Alia Moubayed told Bloomberg.
Central Bank Governor Sultan bin Nasser al-Suwaidi said on 15 July the UAE may buy part of Dubai’s bond sale after purchasing the first tranche in February.
Dubai is raising funds to help state-controlled companies through the global credit crisis and has issued a decree setting up a company to manage the proceeds, the emirate’s Department of Finance said last month.
Emirates Business 24/7 reported today that Ajman Bank, part-owned by the government of the emirate of Ajman, may subscribe to the second half of the bond program.
Dubai has already spent at least half of the US$10 billion raised from the sale of five-year bonds in February to the U.A.E. central bank. The sale was part of a US$20 billion medium- term note program and the second tranche is expected to be sold before the end of the year.