Bond issue giving positive results

Dubai Government's issue of $10 billion (Dh36.73bn) worth of bonds has been giving positive results, said an expert. "Such bonds have allowed the emirate to inject huge liquidity into big infrastructure projects. The move has helped to re-manage the emirate's debt more effectively. It has become part of its funding policy and has created a separation between income and spending. This will help put Dubai at the top of the list of world cities whose economies will grow quickly in the coming months," said Nasser Al Saidi, Chief Economist at Dubai International Financial Centre Authority and Executive Director of Hawkamah for corporate governance at DIFC. Speaking at the UAE Global Investment Forum in Abu Dhabi, he said the UAE economy would return back to its boom level after Ramadan. "The UAE will be among the first countries to get recover from the impact of the financial crisis in the region. Among the main reason for this is the major connection and integration of the UAE economy with several emerging markets that are taking the lead in bringing changes to the world economy such as China and India," said Al Saidi. Asian countries are reporting good economic growth rates where China had reported a rate of 6.5 per cent, and such growth is steady, which is good for the UAE since 70 per cent of the UAE exports go to the emerging Asian countries, said Al Saidi. "The UAE economy has performed well in its reaction to the global financial crisis. Since the beginning of the crisis period, the economy has been focusing on infrastructure projects and economic diversification and the industrial sector, especially petrochemical, gas liquefaction, sustainable energy and nano technology, which are considered to be promising opportunities for foreign investments," said Al Saidi. In response to a question by Emirates Business on the return of IPOs in the private sector companies, Al Saidi said: "There is no doubt that the global financial crisis had an impact on the IPO market, whether stocks or bonds, in the UAE and the region. "But according to my information, there is a very strong intention by companies to go for IPOs. I believe the launching of a government-backed bonds market in the country will encourage private companies to go for IPOs." Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here .