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20 April 2024

Resources exist to refinance Dubai debt: DIC

Dubai's debt to gross domestic product ratio is at better levels than in many other countries, according to the DIC. (DENNIS B MALLARI)

By Reuters
Resources exist to refinance Dubai's estimated $70 billion debt, Dubai International Capital's (DIC) chief executive said on Sunday, brushing off speculation the emirate may need to seek help.

Sameer al-Ansari said the Gulf financial hub's debt to gross domestic product ratio was at better levels than in many other countries.

"In a year's time it will look better," he said at a business forum, referring to the debt refinancing. "I know the resources are there."

The investment agency is owned by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. Ansari's comments came in the wake of a Moody's Investors Services report last month that Dubai may need support to finance the borrowing.

The Dubai government does not publish official figures on the debt but Fitch Ratings said earlier this month that government-owned entities own about $70 billion in foreign-currency bonds and debt. Moody's has said Dubai owed at least $47 billion in debt, more than its gross domestic product.

Last week, a member of the emirate's executive council said Dubai was fully covered to service its debt for the next seven quarters because its asset base far outstrips its debts.

The executive council is the highest decision-making body in Dubai.