Dubai repays $1 billion in sukuk, $300 million of which are 4 years before maturity

Gulf Today, Staff Reporter

The Public Debt Management Office of the Department of Finance in the Government of Dubai announced the payment of Islamic sukuk with a total value of Dhs4 billion, as sukuk worth $750 million (about Dhs2.75 billion) were paid, which were issued on January 30, 2013 under the sukuk issuance program. 

The office also announced an early repayment of an additional $300 million Islamic sukuk (about Dhs1.1 billion) four years before its maturity date.

The office stated that the sukuk were fully recovered after payment of the total amounts required for the holders of these sukuk with their accrued profits, and the office added that the aforementioned sukuk played an important role in financing infrastructure projects, especially the Dubai International Airport expansion project.

Abdul Rahman Saleh Al Saleh, Director General of the Department of Finance, said, "The Dubai government's keenness to pay its financial obligations on their due dates, and the government's willingness to pay part of those obligations before their due date, reflects the image of the government's financial stability, and its keenness to achieve its clear strategy in risk management."

Financial stability

Rashid Ali Bin Aboud Al Falasi, Executive Director of the Public Debt Management Office, indicated that “the strong performance of public revenues in the fiscal year 2022, resulting from the growth of the emirate’s economy, contributed to supporting the government’s drive to enhance the characteristics of the public debt portfolio by reducing financial obligations.” and financing costs, stressing that this step stems from the office’s public debt sustainability strategy.

Al-Falasi added, "This payment comes within the goal of the Public Debt Management Office to significantly reduce the public debt of the Dubai government in the short term."