The UAE, which issued bonds and sukuk worth $2 billion (AED7.7 billion) in 2023, plans to issue bonds and sukuk valued at AED5 billion ($1.36 billion) in the first quarter (Q1) of 2024. 

 

Speaking to the Emirates News Agency (WAM) at the ongoing Asian Financial Forum in Hong Kong, Younis Haji Al Khoori, Undersecretary of the Ministry of Finance highlighted the success of the Islamic Treasury Sukuk launch in 2023. 

 

The sukuk, valued at AED1.1 billion, saw robust demand, with bids received worth AED8.3 billion, and an oversubscription by 7.6 times.

 

Enhancing global financial relationships

Addressing the significance of the ministry's participation in the Forum, Al Khoori emphasised its role in enhancing global financial relationships and contributing to international efforts for economic growth solutions.

 

He underscored the UAE's status as Hong Kong's largest trading partner in the Middle East, with non-oil trade reaching AED22.2 billion in the first half of 2022. The 2019 agreement between the two sides aims to encourage and protect investments, fostering a favourable investment environment.

 

Discussing financial and economic matters at the forum, Al Khoori outlined the ministry's commitment to supporting economic diversification in the UAE. He emphasised the country's strides in reducing reliance on oil and transitioning toward a globally competitive, knowledge, and innovation-driven economy.

 

Sustainable financing

Al Khoori detailed the ministry's focus on sustainable financing to alleviate financial burdens and achieve energy transition goals. He highlighted the role of the Sustainable Finance Working Group in the UAE, promoting environment-friendly investments to mitigate long-term vulnerabilities to climate change and realising substantial economic gains.

 

Furthermore, Al Khoori shared the ministry's initiative to expand the revenue base by implementing a corporate profit tax, effective from June 2023. The corporate tax system has been designed in accordance with best practices, demonstrating the country's commitment to meeting international standards for tax transparency and preventing harmful tax practices.--TradeArabia News Service