Dubai said it lowered its total debt to 25% of GDP by repaying loans including those it had secured from Abu Dhabi and the United Arab Emirates central bank, taking advantage of an economic recovery.
(Bloomberg) — Dubai said it lowered its total debt to 25% of GDP by repaying loans including those it had secured from Abu Dhabi and the United Arab Emirates central bank, taking advantage of an economic recovery.
The emirate repaid a combined 28.5 billion dirhams ($7.8 billion) within a year and a half, its media office said on social media site X, citing its debt management office. It repaid 20 billion dirhams as part of its total financing from Abu Dhabi and the central bank.
The burden has eased as Dubai’s economy booms, according to S&P Global Ratings, declining from a high of 78% in 2020. Dubai emerged from the global pandemic as an investment safe haven and a magnet for tourists and the wealthy, helping it recover from a near default in 2009 after receiving a bailout from neighboring Abu Dhabi, the oil-rich capital of the UAE.
The luxury real-estate market has been a main driver of growth in the past two years, fueled by an influx of newcomers — from crypto millionaires and bankers relocating from Asia to wealthy Russians seeking to shield assets. The government has also brought in a slew of reforms, such as introducing visas for job seekers and freelancers.
The repayments were part of a 2022 – 2024 debt sustainability plan that helped reduce liabilities to “a safe and low level,” the media office said, citing Rashed Ali Bin Obood Al Falasi, head of the Public Debt Management Office.
Read More: Dubai Debt Burden Seen Dropping Sharply by S&P as Economy Booms
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