DUBAI, UAE – The Public Debt Management Office (PDMO) of the Government of Dubai’s Department of Finance (DOF) announced a reduction of approximately US$7.8 billion (AED29 billion) in Dubai’s public debt by the end of this year.
The achievement has been realized 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 important accomplishment has been fulfilled under the directives of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, and the supervision of Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Deputy Prime Minister and Minister of Finance of the UAE.
This reduction will be achieved across all debt classes in the government debt portfolio.
This includes a full redemption of Sukuk certificates worth US$898 million (AED3.3 billion), the repayment of bilateral and syndicated facilities totaling US$1.4 billion (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 United Arab Emirates.
“Despite ongoing global economic challenges, DOF not only achieved financial efficiency for the Government of Dubai but also seized opportunities from adversity” said Abdulrahman Saleh Al Saleh, DOF’s Director General.
“The support received from the leadership has enabled us to achieve rational spending on projects, improve and diversify revenues, and optimize the use of financing instruments. This has facilitated the fulfillment of government financial obligations according to the scheduled dates, in addition to accelerating the fulfillment of some other obligations,” he said.
Rashed Ali bin Obood Al Falasi, PDMO’s Chief Executive Officer, said: “PDMO launched its Public Debt Sustainability Strategy (PDSS) program for 2022-2024, marked by the successful implementation of various strategic initiatives aimed at enhancing the efficiency of the public debt portfolio.”
He said, “The objectives include reducing borrowing costs, mitigating refinancing risk, and ensuring the Government’s financial stability in the medium term. “
He added, “The program also aims to shape robust public financial policies, and foster confidence among investors and financial institutions through maintaining a high level of transparency and credibility.”
Al Falasi said, “One of the pivotal goals realized 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.”
He said that these can be, “As part of its commitment to strategic projects and initiatives such as Dubai Urban Plan 2040 and the Dubai Economic Agenda (D33).”
He added, “This strategic maneuver 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. It’s worth noting that internationally recognized thresholds typically range between 40 percent and 60 percent, underscoring Dubai’s prudent fiscal management.”