UAE Central Bank plans to develop bond market
July 15,2010
UAE. The UAE Central Bank wants bankers to work out a plan for developing a local debt market to allow business to raise funding locally and complement an existing equity market.
In a circular sent to banks last week, the UAE Central Bank sought nominations for a committee to devise a strategy for building such a market, two bankers told Reuters.
"The cornerstone for the development of a local currency bond market is the creation of a risk free yield curve resulting from government bond issuance," said Deepak Kohli, head of capital markets for Middle East North Africa (MENA) & South Asia at Standard Chartered bank, adding the initiative was very timely and could significantly help the economy as a whole.
The bond market in the UAE and the region is yet to be developed fully.
The current funding structure in the region is premised on bank finance and finance from the international markets.
The dislocation in global markets in the last few years has reduced avenues for regional borrowers to tap financing.
July 15,2010
UAE. The UAE Central Bank wants bankers to work out a plan for developing a local debt market to allow business to raise funding locally and complement an existing equity market.
In a circular sent to banks last week, the UAE Central Bank sought nominations for a committee to devise a strategy for building such a market, two bankers told Reuters.
"The cornerstone for the development of a local currency bond market is the creation of a risk free yield curve resulting from government bond issuance," said Deepak Kohli, head of capital markets for Middle East North Africa (MENA) & South Asia at Standard Chartered bank, adding the initiative was very timely and could significantly help the economy as a whole.
The bond market in the UAE and the region is yet to be developed fully.
The current funding structure in the region is premised on bank finance and finance from the international markets.
The dislocation in global markets in the last few years has reduced avenues for regional borrowers to tap financing.