The Public Debt Management Office (PDMO) of the Government of Dubai’s Department of Finance (DOF) has announced a significant reduction of approximately AED 29 billion in Dubai’s public debt by the end of this year. This achievement comes within just a year and a half since the establishment of the office in 2022, marking a significant milestone in implementing its Public Debt Sustainability Strategy (PDSS). The PDSS reflects the ongoing commitment to responsible financial management and long-term fiscal sustainability.
This remarkable accomplishment has been realized under the guidance of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, and the supervision of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Deputy Prime Minister and Minister of Finance of the UAE.
The reduction in public debt will be implemented across all debt classes in the government’s debt portfolio. This includes the full redemption of Sukuk certificates worth AED 3.3 billion, the repayment of bilateral and syndicated facilities totaling AED 5.2 billion, and a partial settlement of AED 20 billion from the financing extended by the Abu Dhabi government and the Central Bank of the United Arab Emirates.
His Excellency Abdulrahman Saleh Al Saleh, DOF’s Director General, expressed, “Despite ongoing global economic challenges, DOF not only achieved financial efficiency for the Government of Dubai but also seized opportunities from adversity. The support received from the leadership has enabled us to achieve rational spending on projects, improve and diversify revenues, and optimize 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, highlighted the significance of the Public Debt Sustainability Strategy (PDSS) program, which spans from 2022 to 2024. The program has been marked by the successful implementation of various strategic initiatives aimed at enhancing the efficiency of the public debt portfolio. These objectives encompass reducing borrowing costs, mitigating refinancing risk, and ensuring the Government’s financial stability in the medium term.
Al Falasi further emphasized, “The program 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.”
Discussing the program’s achievements, Al Falasi noted, “One of the pivotal goals realized 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).”
“This strategic maneuver 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 recognized thresholds typically range between 40% and 60%, underscoring Dubai’s prudent fiscal management,” he concluded.
The PDMO was established in Dubai’s DOF in 2022 under Law No. (8) of 2022, regulating public debt for the Government of Dubai, issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.