Economists: Abu Dhabi bonds are a sign of global confidence in the emirate’s economy

The Abu Dhabi sovereign wealth fund has oversubscribed by more than three times its value to $ 30 billion, with a strong appetite from global investors, institutions and international investment portfolios, which is an important indicator of the confidence of the emirate’s economy and financial stability. Economists and experts.

Abu Dhabi’s economy is one of the most attractive foreign investment markets and one of the most trusted markets in the region and the world.

“The Abu Dhabi 30-year bond offering at a very low interest rate is an indication that investors are betting on a reliable future and an attractive market that will enable them to make a profit and a good and guaranteed return through bond trading and higher Confidence in the coming years as a result of the improvement of the emirate’s economy and its expected growth ».
They explained that the bet in this case is not on the interest rate offered on the bonds, but rather to bet on confidence in the emirate and its economy and future and stability, as well as confidence linked to the UAE in general.

Dr. Ali Abu Rahma, Dean of the Faculty of Business at Abu Dhabi University, said: “The strong appetite of global investors to subscribe to Abu Dhabi sovereign bonds is a sign of high confidence in the Emirate of Abu Dhabi and the UAE and enhances confidence in Abu Dhabi’s expected economic growth in the years to come.

He added that the Abu Dhabi bond issue is considered by economists, experts and investors in the world as one of the most important indicators that investors and companies will depend on in the next stage, in relation to their direct investments in the market as it is an important source of confidence.

Wadah Al-Taha, member of the Advisory Board of the UK’s Institute of Securities and Investment in the UAE, said: “The Emirate of Abu Dhabi enjoys a very high degree of confidence among international investors in view of its historical self-image in the field of strict and full respect for its financial responsibilities to its clients.”

“The Emirate of Abu Dhabi has raised three times the required value and can gather much more without any obstacles or obstacles,” said Al Taha. “The emirate’s trust, credibility and commitment are a huge asset in international markets.”
“The 30-year bond offering is an important indicator of confidence in the future of the emirate’s economy, its performance and its solvency, which is the real bet on which investors depend on their decision rather than the interest rate.”

However, he stressed that the interest rate offered on long-term bonds is very low, which reflects the confidence of the Emirate of Abu Dhabi and its economy.

Reda Musallam, Managing Partner of Truth Economic Consultancy, said that Abu Dhabi has a very high and very strong rating and has one of the largest sovereign funds in the world. The emirate is borrowing from international markets because its trust allows it to obtain Financing at low prices.

“The financial return of the Abu Dhabi sovereign fund is higher than the cost of borrowing through bonds, so borrowing is more economically viable for the emirate than using sovereign assets,” Muslim said.

“The approach to the international capital market generates monetary cash surpluses that the emirate can use to meet the emirate’s needs related to the development of infrastructure, strategic projects and other public spending requirements,” he said.

He explained that this source of financing from international markets is not available to all borrowers or those who wish to borrow, but to those who have confidence and credibility in the international markets, which is an advantage for Abu Dhabi, which employs them to achieve their economic objectives to the fullest and at the lowest cost.

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