Khaberni - The United Arab Emirates increased its investments in US Treasury bonds during the year 2025, registering the largest increase among Arab investors, reflecting a growing interest in American debt instruments.
According to an analysis by the American economic magazine "Forbes", the UAE's holdings of US Treasury bonds reached about $95.6 billion.
According to debt instrument holdings, the UAE recorded an annual increase of $18.5 billion during the year 2025, marking the largest rise in these assets among Arab investors.
The UAE's portfolio rose from $77.1 billion in December 2024 to a peak of $119.9 billion in February 2025, reflecting the magnitude and speed of the increase in investments in American debt instruments.
According to "Forbes", the growth in the UAE's investment allocations indicates a greater focus on liquidity and strengthening of balance sheets.
The CEO of the "deVere Group" Nigel Green believes that the reasons for the significant rise in investments in US Treasury bonds are due to strong oil revenues and relatively attractive US returns, adding that the data highlights the "extent of the region's link to US interest rates".
Green said, "Geopolitical conditions and differing global growth rates push countries to prioritize financial flexibility."
US Treasury bonds are among the most important sovereign debt instruments in the world and are a cornerstone of the international financial system, due to their link to the US economy and the dollar's status as a global reserve currency.
US Treasury bonds are widely trusted due to the size and relative stability of the American economy, and they also serve as secondary market liquidity, allowing them to be easily bought and sold, and used as a benchmark for pricing assets globally, as their yields are a standard for determining interest rates on loans and other bonds.
Central banks, sovereign wealth funds, and global financial institutions hold a large share of these bonds, along with foreign investors from Asia, Europe, and the Middle East. Countries use them as a tool for managing foreign exchange reserves and enhancing financial stability.
