Posted by Neil King
Abu Dhabi plans to reduce its budget deficit to Dh84.9 billion in 2010 from Dh126.5 billion last year based on an assumed oil price of $60 a barrel for the year, new documents reveal.
The forecast was made in the prospectus for a planned bond sale which is to be "unconditionally and irrevocably guaranteed" by the emirate of Abu Dhabi, Gulf News reported.
As the newspaper observed, the deficit reduction plan will be implemented while the emirate carries out its ambitious development programme.
The prospectus for the planned bond sale by local aircraft leasing and investment firm Waha Capital also showed that the budget deficit in 2010 is expected to be financed by transfers from the Abu Dhabi Investment Authority and the Abu Dhabi Investment Council.
Gulf News commented that because Abu Dhabi's government does not publicly release budget figures and projections, the emirate last disclosed such numbers in the prospectus for its $10 billion sovereign bond programme in March 2009.
Earlier this week, it was revealed that Dubai International Financial Center is currently exploring plans to establish a "second-tier" stock exchange for small and medium-sized enterprises in the Middle East.