This approach contributes to diversifying funding sources and ensuring their sustainability, in addition to enhancing the confidence of international investors in the national economy. It also aims to direct the proceeds of issuances towards strengthening the investment portfolio of the sovereign wealth fund, which supports the fund's long-term investment capabilities and boosts its contribution to the overall financial sustainability. International bonds complement domestic debt instruments, as they are denominated in foreign currencies and feature long maturities, allowing the federal government to expand its financing options and extend average maturities to between 10 and 40 years, achieving a better balance between the domestic and external public debt structures. The Ministry of Finance has stated that it is studying the possibility of issuing digital bonds to deepen financial markets, alongside considering the issuance of green debt instruments (sukuk or bonds) suitable for supporting projects or qualified public spending within sustainability and the federal budget scope. According to a report obtained by 'Emirates Today', as part of strategic plans to develop the local debt instruments market and enhance the efficiency of the yield curve, the Ministry of Finance intends to explore the possibility of launching new issuances with longer maturities, such as tranches for seven and ten years. This will help expand the yield curve and provide a more comprehensive benchmark for financial markets. The ministry will also continue efforts to diversify its investor base, focusing on attracting investors from Asian markets, especially for long-term tranches, aiming to broaden the demand base and deepen the market. To reinforce investor confidence and enhance market transparency, the ministry will work to maintain a regular pace of standard-sized issuances, particularly for long-maturity tranches, ensuring consistency and reliability of the yield curve. Future plans also include strategically improving the mix of sizes and maturities in upcoming auctions to balance secondary market liquidity with long-term investor needs, as well as expanding the option for direct issuance to individuals with a lower minimum investment threshold. The ministry confirmed in its report that an additional external public debt issuance for the years 2026–2030 has been approved within the approved public debt ceiling. The timing of these issuances will be coordinated with the Emirates Investment Authority, as the beneficiary of the proceeds, which are targeted at enhancing the sovereign assets managed by the authority. The issuance of international bonds in non-UAE dirham currencies constitutes a key pillar of the federal government's public debt strategy. These bonds serve as an effective tool to access a broad base of global investors, enhancing the UAE's position as a leading financial center regionally and internationally. Green bonds or sukuk are debt instruments issued to finance environmentally friendly projects, such as renewable energy, pollution reduction, and resource efficiency improvement. They support sustainability goals by directing funds toward activities with a positive environmental impact. These bonds offer investors regular returns and guarantee repayment for multiple classes of international investors. It is worth noting that digital bonds are debt instruments issued, traded, and managed electronically using modern technologies like blockchain, eliminating the need for paper documents, which makes them faster, more efficient, and transparent.
