Skip to content Skip to Search
Skip navigation

Dubai public debt to fall by $8bn by end of 2023

The substantial reduction of public debt levels resulted in a significant boost to Dubai government's financial liquidity

Dubai’s public debt will drop by AED29 billion ($7.90 billion) by the end of the year, the emirate’s Public Debt Management Office (PDMO) said.

The debt reduction includes a full redemption of sukuk worth AED3.3 billion, the repayment of bilateral and syndicated facilities worth AED5.2 billion and a partial settlement of AED20 billion from the financing extended by the Abu Dhabi government and the Central Bank of the UAE, the UAE state-run Wam news agency reported.

The reduction will be achieved across all debt classes in the government debt portfolio through the public debt sustainability strategy (PDSS).

Rashed Al Falasi, CEO, PDMO, said the objectives of the PDSS programme for 2022-2024 include reducing borrowing costs, mitigating refinancing risk, and ensuring the government’s financial stability in the medium term.

He added that the substantial reduction of public debt levels resulted in a significant boost to government financial liquidity and preparedness to meet any funding requirement for strategic projects and initiatives such as the 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 percent.”

S&P has estimated Dubai’s gross general government debt will fall to 51 percent of GDP, or $66 billion, by the year-end from 78 percent of GDP in 2020.