Dubai has slashed public debt by AED20bn ($7.9bn), according to the Public Debt Management Office (PDMO) of the emirate’s Department of Finance (DOF).
The achievement has been realised within a year and a half since the establishment of the office in 2022, marking a milestone in implementing its Public Debt Sustainability Strategy (PDSS).
The PDSS translates the ongoing commitment to responsible financial management and long-term fiscal sustainability.
This reduction will be achieved across all debt classes in the government debt portfolio.
This includes a full redemption of Sukuk certificates worth AED3.3bn ($899m), the repayment of bilateral and syndicated facilities totalling AED5.2bn ($1.4bn), and a partial settlement of AED20bn ($5.4bn) from the financing extended by the Abu Dhabi government and the Central Bank of the United Arab Emirates.
Abdulrahman Saleh Al Saleh, DOF’s Director General, said: “Despite ongoing global economic challenges, DOF not only achieved financial efficiency for the Government of Dubai but also seized opportunities from adversity.
“The support received from the leadership has enabled us to achieve rational spending on projects, improve and diversify revenues, and optimise the use of financing instruments.
“This has facilitated the fulfilment of government financial obligations according to the scheduled dates, in addition to accelerating the fulfilment of some other obligations.”
Rashed Ali bin Obood Al Falasi, PDMO’s CEO, said: “PDMO launched its Public Debt Sustainability Strategy (PDSS) programme for 2022-2024, marked by the successful implementation of various strategic initiatives aimed at enhancing the efficiency of the public debt portfolio.
Highlighting the programme’s achievements, Al Falasi said: “One of the pivotal goals realised through debt repayments, is the substantial reduction of public debt levels, resulting in a significant boost to government financial liquidity and preparedness to meet any funding requirement, as part of its commitment to strategic projects and initiatives such as Dubai Urban Plan 2040 and the Dubai Economic Agenda (D33).
“This strategic manoeuvre has led to a remarkable reduction in the public debt-to-GDP ratio, which now stands at a safe and conservative level of 25 per cent.