It is working on developing the local debt market in dirhams... and issuing an appropriate debt instrument
«Finance»: 95.4 billion dirhams of value-added tax revenues until October 2021
Younis Al-Khoury: "The UAE has achieved a sovereign credit rating of (AA-) from (Fitch), and "Aa2" in creditworthiness from (Moody's)."
Finance: The total revenue distributed at the state level for selective tax exceeded 8.6 billion dirhams.
The Undersecretary of the Ministry of Finance, Younis Al-Khoury, revealed that the total revenues distributed at the state level for the value added tax since its application in 2018 until the end of October of 2021, exceeded 95.4 billion dirhams, while the total revenues distributed at the state level for the selective tax for the same period amounted to more than 8.6 billion dirhams.
Al Khouri said that the UAE has achieved a sovereign credit rating of (AA-) by “Fitch International”, and a rating of “Aa2” in creditworthiness, which is the strongest sovereign rating in the region, by “Moody’s International”, with the country receiving a “look at stable outlook” from both agencies. He pointed out that the Ministry of Finance is currently working with the Central Bank of the Emirates, all financial authorities and specialized experts, to develop the local debt market in UAE dirhams, by issuing an appropriate “debt instrument” by the state, thus facilitating the development of the long-term yield curve of the dirham. Al-Khoury stated that the most prominent and most important achievements of the Public Debt Office at the Ministry of Finance is the success of the external issuance of the federal government of the UAE, and the inclusion of the first issue of sovereign bonds worth four billion dollars.
Al-Khoury explained that the US dollar-denominated bonds included three tranches; The first with a value of one billion dollars for a tenure of 10 years, the second with a value of one billion dollars for a term of 20 years, and the third with a value of “Formosa” bonds with a value of two billion dollars for a term of 40 years, which in all attracted tremendous interest from investors in the region and the world alike, as the subscription requests exceeded the target level. At a rate of 5.6 times, and a total of $22.5 billion, which allowed the Ministry of Finance to issue bonds with the lowest return for an inaugural sovereign issuance among the countries of the Cooperation Council for the Arab States of the Gulf, as the returns of the three issues were priced at 2%, 2.875% and 3.250%, respectively, This confirms the strength of the UAE's sovereign credit rating, and its solid and balanced economy.
The UAE started implementing the “selective tax” as of October 1, 2017, which is an indirect tax that is imposed on certain goods, which are harmful to human health or the environment, while the implementation of the value-added tax began on January 1, 2018, at a rate of A baseline of 5% on most goods and services supplied at each stage of the supply chain.
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