Dubai, Oct 16 (Emirates 247): Mubarak Rashed Al Mansouri, Governor of the Central Bank, has said that new Federal Government debt law lays the foundations for the development of a bond market in the Dirham denomination in the UAE.

In a statement, Al Mansouri said, "This is important as it will create deeper, more resilient financial markets, benchmark the yield curve, provide more diversified sources of financing, mobilise additional domestic savings and attract capital inflows."

The development of vibrant public and private bond markets - including Sukuk - will also facilitate compliance with Basel III liquidity requirements, and allow investors to balance risks in more diversified portfolios, Al Mansouri explained.

"Overall, this is in line with the nation’s vision to press ahead with further diversification of the economy, and will underpin the UAE’s position as a growing regional and global financial centre, and further improve the UAE’s credit rating," he added.