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CBUAE to Launch New Index for Actual Overnight Funding Transactions

The Central Bank of the UAE (CBUAE). Wam
The Central Bank of the UAE (CBUAE). Wam
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CBUAE to Launch New Index for Actual Overnight Funding Transactions

The Central Bank of the UAE (CBUAE). Wam
The Central Bank of the UAE (CBUAE). Wam

The Central Bank of the UAE (CBUAE) will publish a new index for actual overnight funding transactions denominated in UAE Dirham from December 7, 2021, named "DONIA" – Dirham Overnight Index Average, as part of the new Dirham Monetary Framework implementation plan.

The objective of this new index is to provide market participants with data pertinent to the overall state of the actual interbank market and to improve transparency in domestic money market activities.

Governor of the CBUAE Khaled Mohamed Balama said the launch of DONIA facilitates implementation of the new Dirham Monetary Framework.

We, at the CBUAE, are confident that the publication of this new reference rate will not only provide additional transparency to the Dirham money markets but also help the CBUAE in ensuring overnight money market rates are aligned to prevailing Base Rate."

DONIA is the effective overnight reference rate for the Dirham. It is computed as a volume-weighted money market rate for all actual overnight secured and unsecured funding transactions of AED10 million or greater contracted by all banks operating in the UAE, captured through the UAE Funds Transfer System (UAEFTS).

The CBUAE expects that this index will serve as an anchor for banks in determining factors relevant to their daily fixing of interbank rates (EIBOR).

DONIA should also help improve monetary policy transmission in the UAE, underpinned by the transparency in terms of the way it is computed, and the fact that it is a true reflection of actual local interbank market conditions.

The CBUAE has no plans to discontinue the EIBOR once the DONIA is published, as DONIA and EIBOR will co-exist in the domestic markets.

At this stage, DONIA shall not be used to price financial market products offered or structured in the UAE.

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Saudi-Ukraine Joint Business Council Poised for Major Trade Opportunities

Continental Farms Ukraine, owned by Saudi firm SALIC (Asharq Al-Awsat)
Continental Farms Ukraine, owned by Saudi firm SALIC (Asharq Al-Awsat)
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20
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Saudi-Ukraine Joint Business Council Poised for Major Trade Opportunities

Continental Farms Ukraine, owned by Saudi firm SALIC (Asharq Al-Awsat)
Continental Farms Ukraine, owned by Saudi firm SALIC (Asharq Al-Awsat)

Saudi Arabia and Ukraine are looking to their revived Joint Business Council, set to be reestablished this year, to unlock economic, investment, and trade opportunities.
With Kyiv facing an energy crisis in the wake of its ongoing conflict, Riyadh is poised to step in and help meet its energy needs. In return, Saudi Arabia is seeking key food imports from Ukraine, including various types of meat and grains.
The two countries announced the revival of the council in a joint statement on Tuesday during Ukrainian President Volodymyr Zelensky’s official visit to the kingdom.
Both sides discussed the strength of their economic ties and underscored the importance of joint efforts to boost trade, which grew by 9% last year. They agreed on the need to overcome challenges hindering commercial relations.
Bilateral trade exceeded SAR 1.72 billion ($459.2 million) in 2023, with key exchanged goods including meat, edible offal, plastics and related products, live animals and animal products, as well as grains.
Experts believe Saudi Arabia and Ukraine are counting on their revived Joint Business Council to unlock significant economic opportunities.
They highlight Kyiv’s urgent need for energy, particularly natural gas, which it previously imported from Russia, while Saudi Arabia seeks to secure key food supplies, especially grains, from Ukraine.
Fadl Al-Buainain, a member of Saudi Arabia’s Shura Council, told Asharq Al-Awsat that the council will play a crucial role in boosting investment opportunities between the two countries. He noted that Ukraine will prioritize cooperation in Saudi Arabia’s energy sector, given its severe energy shortages following the Russia-Ukraine war.
Kyiv, he said, is particularly focused on securing gas supplies and may later explore collaboration on nuclear reactors and coal.
On the Saudi side, the kingdom is looking to invest in promising sectors aligned with its Vision 2030 goals, particularly those linked to strategic and food security, Al-Buainain said.
He emphasized that Ukraine has strong capabilities in meat, grain, and other food production, making it an attractive partner for Riyadh, which has already invested in Ukraine’s agricultural sector.
Al-Buainain also pointed to Saudi-Ukrainian partnerships in the defense industry and stressed that Kyiv will require extensive reconstruction and infrastructure development once the war ends—an area where both countries stand to benefit from enhanced cooperation under the revived business council.