UAE cuts its investments in US Treasury bonds for these reasons

The United Arab Emirates has reduced its investments in US Treasury bills and bonds in light of the economic crisis and the high cost of its wars and foreign interventions, according to official US data.

The UAE reduced its holdings of US bonds by 24.4 percent, valued at $12 billion, dropping its balance from $49 billion until the end of August, to $37.3 billion until the end of September.

GCC investments in US Treasury bills and bonds totaled $288.2 billion as of August.

Saudi Arabia was the largest Gulf investor in US bonds and bonds, valued at $181.5 billion in September, up from $183.8 billion in August, treasury data showed.

Kuwait ranked second, with total investments of $44.1 billion, compared to $44.06 billion the previous month.

The UAE ranked third, with total investments amounting to $37.3 billion, then Oman with $8.6 billion, Qatar $2.2 billion, and Bahrain topping the list with only $321 million.

What the Treasury announces in its monthly statements is the Gulf states’ investments in US Treasury bills and bonds only, and do not include other investments in the United States, whether government or private.

US Treasury bonds are a means of raising funds and debt from countries and institutions and are repaid by the Washington government when their maturity varies according to the term of the bond.

US bonds are attractive because of the low level of non-repayment risk, which explains the low yield (interest), although the US Federal Reserve has been implementing a plan to raise interest rates for some time.

Observers attributed the reasons for the decline of UAE investment in US bonds due to the high cost of the Yemen war and the economic problems of the state.

Observers expect that the UAE will continue to reduce its investments in US bonds in the coming period, especially in light of the effects of its economy.

This comes as the UAE system of using the media machine continues to keep the Emiratis in the dark about the state of the economy in the country, an approach that has been increasing for nearly a decade. In addition, the state continues to fail to promote a good reputation from the country in an attempt to obliterate the worst human rights situation and military intervention against the people of other countries in the region.

Official newspapers published the headline: “Experts: Dubai real estate is at its highest level since 2008 in conjunction with Expo 2020″, based on statements by officials at Beltone Holdings“ Masria ”.

The report indicates that there is an increase in transactions for houses and apartments in Dubai. However, this has nothing to do with Expo 2020, but with the decline in the value of Dubai’s property, where buyers see this as the best opportunity to buy a property in Dubai, with a significant drop in value.

It also came as a result of the new government’s central bank measures, which made it easier to borrow to buy houses. But that does not mean real estate prices are rising, according to official newspapers. “I think we will continue to see an increase in transactions just because of the supply and prices will continue to fall,” says Lynette Abad, data and research manager at Property Finder.

“People think this is the best time to buy because they feel it is at the bottom, but also some customers think that once we get close to 2020, prices will start to rise,” she says of the uptake.

This is a miserable attempt to mislead the UAE public, and these reports appear to be part of a media struggle with investors, including Damac Properties Chairman Hussain Sajwani, who in an interview demanded a halt to construction in Dubai for years so the offer did not increase; Official media rejects his proposal.

Instead of propaganda campaigns and a pink economy for the state, real data on real estate in Dubai should be presented. It is very easy to create myths and novels in the absence of facts and “transparency” for citizens.

Damac, a major investor in real estate companies at the end of October, said its profit fell 87 percent in the second quarter.

The increase in housing supply in Dubai has driven prices down by at least a quarter since 2014. Making Expo 2020 bad for the country.