Secretary-General of Dubai Economic Council (DEC) Hani Al Hamli said the announcement of Dubai Government to repay in full $4 billion (Dh14.7 billion) of debt maturing later this month from internal sources sends a strong signal that Dubai is able to honour financial commitments and at the same time go on with development projects.
The repayment indicates strong performance by Dubai's economy, reported WAM. The Investment Corporation of Dubai (ICD), the investment arm of the Government of Dubai, announced that it will repay in full the $4bn, three-year tranche of the $6bn conventional and Islamic facilities signed on August 21, 2008, the Dubai Government Media Office said in a statement the $4bn obligation, which falls due on August 21, means Dubai's economy will be able to produce surplus to further strengthen the national economy, according to Al Hamli.
Monday's announcement, issued by Dubai's government media office, comes as world markets are slumping following Standard & Poor's one-notch downgrade on Friday of the United States' credit rating.
"The achievement is the outcome of excellent performance by Investment Corporation of Dubai," he added.
Earlier story: Dubai's ICD will repay $4bn loan in full
Investment Corporation of Dubai (ICD), the emirate's sovereign wealth arm, on Monday said it will repay in full a $4bn loan maturing on August 21, financing it mainly with dividends from its investments.
ICD had been expected to repay part of the loan and had already agreed with banks to refinance $2.8bn of the upcoming maturity, in what would have been the largest loan to emerge from Dubai since 2009.
ICD holds about $70 billion in assets and its portfolio includes Emirates airline and stakes in Dubai's largest bank, Emirates NBD, developer Emaar Properties and Borse Dubai.
"Today's announcement demonstrates that as part of the government of Dubai, ICD is committed and able to meet its debt obligations," Mohammed Al Shaibani, executive director and chief executive of ICD said in a statement.
The $4bn is the three-year tranche of a total $6 billion deal signed in 2008. The remaining $2bn, five-year tranche matures on August 21, 2013.