The government of Dubai set up a Debt Management Office (DMO) that will be responsible for diversifying the emirate's funding sources and meeting its financing requirements.
Established under the Dubai Department of Finance, the DMO will also be in charge of managing the sovereign debt portfolio, the Dubai Media Office said in a statement on Monday.
Set up under Law No. 8 of 2022 regulating public debt in Dubai, the DMO will set strategic objectives and policies, evaluate risks to ensure government financial sustainability, maintain transparency to enhance investors’ confidence and develop relationships with all stakeholders, the media office said.
Rashid Al Falasi was appointed chief executive of DMO by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of the emirate’s Executive Council.
“The establishment of the DMO showcases the government's continuous efforts in strengthening its financial position through the management of the sovereign debt,” Abdulrahman Al Saleh, Director General of DOF, said.
The DMO will meet the government’s financing requirements “efficiently” and ensure the development of infrastructure projects in various sectors, which, in turn, will “improve the quality of life and enhance the emirate's global competitiveness”, he added.
The economy of Dubai, the commercial, financial and trading hub of the Middle East, has rebounded strongly from the pandemic-driven slowdown. The emirate is undertaking several multibillion dollar infrastructure and other schemes across sectors as it pursues the Dubai 2040 Urban Master Plan.
This overarching vision outlines how the emirate will be developed over the next 20 years, envisaging large-scale changes to the landscape and skyline.
“The establishment of the DMO aims to ensure efficient and effective management of the public debt portfolio with prudent cost and risk strategies while developing governance frameworks that strengthen the financial policies in the emirate in general and the public debt in particular,” Mr Al Falasi said.
Diversifying funding sources and developing an efficient market for government securities will be among the DMO's priorities, he added.
