Dubai authorities on Monday announced the redemption of $750 million (approximately Dh2.755 billion) worth of trust certificates (Sukuk) issued on January 30, 2013, under the Trust Certificate Issuance Programme (Sukuk Programme). The government also prepaid an additional $300 million (approximately Dh1.1 billion) of Sukuk through an early redemption, almost four years ahead of its maturity in November 2026.
The Public Debt Management Office (DMO) of the Dubai government’s Department of Finance said that the government has fully redeemed the Sukuk through the settlement of payable amounts, including accrued profits, to the investors. The office further stated that the Sukuk played a vital role in financing infrastructure projects, primarily the expansion of the Dubai International Airport.
Abdulrahman Saleh Al Saleh, DOF’s Director General, affirmed that the Dubai government’s commitment to the timely settlement of financial obligations and the willingness to prepay such obligations before its due date reflects its strong financial position and its strong focus on achieving its risk management strategy.
Rashid Ali bin Obood Al Falasi, CEO of the Public Debt Management Office, said the strong performance of public revenues in the 2022 fiscal year, resulting from the overall economic growth of the emirate, contributed to the government’s efforts to further raise the efficiency of managing the public debt portfolio, particularly by reducing financial obligations and related costs, in accordance with the Office’s Public Debt Sustainability Strategy.
“These redemptions align with the DMO’s aim of deleveraging in the short term, notably lowering the Dubai government’s public debt levels,” Al Falasi added.
