The United Arab Emirate's national assembly passed a new public debt law on Tuesday, marking a key step toward the issuance of the country's first sovereign bond.

The law was approved by the Federal National Council, a parliamentary body which monitors and debates government policy but cannot initiate legislation by itself. It needs presidential approval to become law.

The UAE has said it will consider a federal bond after the passage of the debt law and the creation of a debt management office. - Reuters