DUBAI, 26th September, 2023 (WAM) -- The Public Debt Management Office (PDMO) of the Government of Dubai's Department of Finance (DOF) has announced a reduction of approximately AED29 billion in Dubai's public debt by the end of this year.

The achievement has been realised 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 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 AED3.3 billion, the repayment of bilateral and syndicated facilities totaling 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" Abdulrahman Saleh Al Saleh, DOF's Director General said Wednesday. "The support received from the leadership has enabled us to achieve rational spending on projects, improve and diversify revenues, and optimise 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."

Rashed Ali bin Obood Al Falasi, PDMO's Chief Executive Officer, added: "PDMO launched its Public Debt Sustainability Strategy (PDSS) programme for 2022-2024, marked by the successful implementation of various strategic initiatives aimed at enhancing the efficiency of the public debt portfolio. The objectives include reducing borrowing costs, mitigating refinancing risk, and ensuring the Government's financial stability in the medium term."

"The programme 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."

"One of the pivotal goals realised 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, as part of its commitment to strategic projects and initiatives such as Dubai Urban Plan 2040 and the Dubai Economic Agenda (D33)," A;l Falasi said.

"This strategic manoeuvre has led to a remarkable reduction in the public debt-to-GDP ratio, which now stands at a safe and conservative level of 25%. It's worth noting that internationally recognised thresholds typically range between 40% and 60%, underscoring Dubai's prudent fiscal management," Falasi concluded.