DIFC Investments repays $500m

Dubai: DIFC Investments, the savings arm of the Dubai International Financial Centre (DIFC), said on Tuesday it had repaid its $500 million (Dh1.83 billion) syndicated loan in full before maturity, reinforcing Dubai's assertion that its entities are in good shape.

The loan was due to mature on Friday, the company said in a statement.

The DIFC announcement comes within days of Dubai Holding's repayment of a Dh2.4 billion debt as Dubai government companies show that they are able to meet their debt obligations.

DIFC Investments manages the Dubai International Financial Centre's commercial operations and the investments.

The company said it has been reviewed and reconfirmed a few weeks ago by Standard & Poors at "A+". It has also been reviewed and reconfirmed by Moody's around the same period and assigned a credit rating of "A1."

Dubai Holding Commercial Operations Group, which runs the conglomerate's telecommunications, real estate, infrastructure and hotel operations, said recently it had repaid Dh1 billion in eurobonds maturing in November and Dh1.4 billion in outstanding bank loans.

Mohammad Al Abbar, a member of Dubai's Executive Council and chairman of Emaar Properties, told a business forum recently that the Dubai government can meet all its debt obligations.

Many companies from Dubai have borrowed to finance their large acquisitions of assets in a number of countries. Dubai World, which includes companies such as Nakheel, Istithmar and DP World, has also reassured the market in the past that its finances are in good shape.

Its chairman Sultan Bin Sulayem recently said the group is still able to source funds despite a global credit crunch and has been looking for new acquisition opportunities.

The Dubai government officials are keen to stress that while growth may be slowing down in the emirate, especially in the important property sector, economic fundamentals in the UAE and the wider Gulf region are sound.

"Let me state categorically, that the government can, and will, meet all its obligations going forward; so please have no doubt about this fact," Al Abbar told the forum.

Total sovereign and affiliated company assets of Dubai were more than $350 billion, while total debts were just $80 billion, Al Abbar said recently. According to him, Dubai's sovereign debt obligation was $10 billion, while sovereign assets were estimated at $90 billion.