The Dubai government, acting through the Department of Finance (DoF), has repaid $500 million of US dollar-denominated bonds that had been issued under its Euro Medium Term Note Program.
The fixed-rate notes were first issued ten years ago and have been paid in full as they became due on June 22.
According to the statement, “Upon maturity, all the notes have been redeemed in full by making the required payment through the paying agent to the holders of the notes, along with accrued interest.”
“The Government of Dubai’s ability to fulfill its financial obligations reflects its deep fiscal stability amidst the circumstances imposed by the current global crisis. The government’s solvency has allowed it to fulfill its past and current obligations and will continue to enable it to meet all future obligations on time. We have been successful in overcoming the most challenging repercussions of the global pandemic, and have now entered a solid phase of recovery, thanks to the measures taken by the government to ensure rational prioritized spending, under the directives of our leadership.”
The Dubai government, which does not have a sovereign rating, has issued five separate stimulus packages since the outbreak of the pandemic totaling around $1.9 billion (Dh7.1 billion). In addition, the emirate has taken a number of other steps to assist local enterprises.
Recently, Dubai Crown Prince and Chairman of The Executive Council of Dubai His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has issued directions to reduce government procedures for doing business by 30 percent in order to lower the cost of doing business and further stimulate economic growth in the emirate.