UAE launches public debt report outlining strategy and market growth through 2025

Dubai: The UAE Ministry of Finance has released a report detailing federal public debt strategy and market development between 2022 and 2025, highlighting expanded issuance activity, strong investor demand and sustained sovereign credit ratings.

The report, titled “Federal Government Public Debt 2022–2025: Public Debt: Efficiency and Sustainable Financing,” outlines the country’s approach to managing debt as part of broader efforts to support economic stability and long-term growth.

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Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE, said: “The UAE will continue to solidify and upgrade its advanced economic system while driven by a long-term vision and sustainable financial planning, under the wise leadership of UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.”

“Over the past decades, the UAE has successfully built a strong and agile financial system, enabling the country to achieve leading development milestones and adapt to global economic shifts. This progress will undoubtedly contribute to achieving the national aspirations outlined in ‘We the UAE 2031’ and the UAE Centennial 2071,” Sheikh Maktoum said.

He added: “Public debt management stands out as a strategic tool to strike a balance between spending efficiency and resource sustainability. It plays a key role in creating a robust and attractive financial and investment environment by developing an efficient, transparent, and diversified sovereign debt market. This would not only contribute to enhancing financial system stability but would also provide policymakers with greater flexibility in addressing economic challenges.”

The report shows the UAE conducted 23 auctions of Islamic Treasury Sukuk worth Dh27 billion and eight Treasury Bond auctions totalling Dh11.2 billion by the end of 2025. All issuances were listed on Nasdaq Dubai.

Internationally, the government raised $10 billion through US dollar-denominated bonds issued between 2021 and 2024. Subscription levels exceeded five times the offering size, reflecting strong investor demand.

Sheikh Maktoum said public debt management is central to maintaining strong credit ratings, diversifying funding sources and supporting long-term growth, noting that risk management and hedging strategies remain integral to the country’s financial framework.

Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, said: “The UAE attaches utmost importance to improving the efficiency of public debt management, viewing it as a fundamental part of its advanced financial framework, and has set out a national vision founded on robust financial governance and forward-looking planning.

“Accordingly, the Ministry of Finance is developing sovereign debt instruments in line with global best practices, reinforcing the UAE’s commitment to achieving sustainable financial stability that supports its development agenda.”

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The UAE continues to hold high sovereign credit ratings, including Aa2 from Moody’s, AA- from Fitch and AA from S&P Global, all with stable outlooks.

The report also details the structure of a federal investment portfolio introduced in May 2025, with 51% allocated to US Treasury bonds and the remainder to diversified spread-enhanced assets, including corporate bonds and asset-backed securities.

A retail-focused initiative launched in November 2025 enabled individual investors to access Treasury Sukuk and bonds with a minimum investment of Dh4,000. The programme attracted around 310 investors and generated Dh7.10 million in subscriptions.

The Ministry said the report serves as a national reference for public debt management, outlining frameworks for risk management, regulatory compliance and market development aligned with international standards.