Dubai Government repays AED 4 billion worth of Sukuk

The Public Debt Management Office of the Government of Dubai’s Department of Finance announced the redemption of $750 million (over AED 2.75 billion) worth of Trust Certificates (Sukuk) issued on January 30, 2013, under a Sukuk Programme.

The Government also prepaid an additional $300 million (nearly AED 1.1 billion) of Sukuk through an early redemption, almost four years ahead of its maturity in November 2026.

The Public Debt Management Office (DMO) said that the Dubai Government has fully redeemed the Sukuk through the settlement of payable amounts, including accrued profits, to the investors.

It 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, the Department of Finance’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, Chief Executive Officer of the DMO, 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.

The DMO was established last year pursuant to Law No. (8) of 2022 issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai.

The purpose of the Law was to regulate the public debt of the Dubai government.

The Public Debt Management Office of @DOF_Dubai announced the redemption of $750 million worth of Sukuk issued on 30 January 2013. Dubai Government also prepaid additional $300 million of Sukuk through an early redemption, almost four years ahead of its maturity in November 2026.

— Dubai Media Office (@DXBMediaOffice) February 20, 2023