1 To Watch
Turkey’s earthquakes raise questions over dam safety and its transboundary implications
February’s disaster has renewed international scrutiny of the safety of Turkey’s dams and the risks they pose to downstream states.
March 29, 2023
Increased attention on federal financing initiatives is a sign of a strategy to strengthen the ‘united’ element in UAE.
Note: This edition of 3 To watch was distributed in full on October 19.
Opportune timing amid low borrowing costs and strong investor demand allowed the UAE to borrow more than initially anticipated and with longer-dated maturities as part of a three-tranche deal which also includes a Formosa portion.
Tapping into a more diverse investor pool and raising funds to finance long-term infrastructure projects makes sense and is a sign of a maturing financial model. The next step will likely be to develop an AED-denominated debt curve, allowing UAE entities to issue local currency bonds using a federal issue as a benchmark; progress on this has so far been limited. More money for social spending should also lead to more national initiatives in this sector and could allow individual emirates to tap federal funding as they look to recover from the pandemic.
While support from Abu Dhabi is implied – though not guaranteed – there appears to be increasing consensus and cooperation on developing a more unified national approach to the UAE’s future development. This is especially visible between Abu Dhabi and Dubai. The latter’s ruler, Sheikh Mohammed bin Rashid, is also prime minister of the UAE and his son now oversees a growing federal finance mandate.
Proceeds from the recent bond will support the Emirates Investment Authority, the only federal sovereign wealth fund. As non-oil growth is expected to outperform overall GDP in 2021 and even 2022, the UAE’s biggest emirates are seeking to rebalance the economic relationship and align on domestic development goals.
1 To Watch
February’s disaster has renewed international scrutiny of the safety of Turkey’s dams and the risks they pose to downstream states.
March 29, 2023
1 To Watch
The Abraham Accords have rapidly increased opportunities for collaboration between signatory states and Israel – a global leader in water management and technology – on improving water and food security.
March 2, 2023
1 To Watch
Fresh EU sanctions and a G7-led price cap on Russian crude have sought to safeguard global oil supplies and prices, but energy markets will struggle to absorb their impact.
December 6, 2022
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