UPDATE 1-Dubai government redeems $750 mln Islamic bond

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds detail, quotes from officials) DUBAI, Feb 20 (Reuters) - The emirate of Dubai has redeemed a $750 million sukuk, or Islamic bond, and paid back early an additional $300 million of sukuk, its media office said on Monday, as its economy continues to rebound from the COVID-19 pandemic. The Public Debt Management Office redeemed the sukuk which was issued on Jan. 30 2013, the media office said, while the early repayment of $300 million was almost four years ahead of maturity in November 2026. "Dubai government's commitment to the timely settlement of financial obligations and the prepayment of such obligations before their due date reflects its strong financial position and robust risk management strategy," Abdulrahman Al Saleh, director-general of Dubai's department of finance said in comments tweeted by the media office. Dubai's economy has rebounded swiftly from the COVID-19 pandemic, with GDP growing 4.6% on the year for the first nine months of 2022. In January, Dubai's ruler Sheikh Mohammed bin Rashid Al Maktoum launched a new economic plan for the next decade called D33 with ambitious targets for attracting foreign direct and increasing foreign trade. The city-state is a regional commercial and tourism hub, but its dependence on sectors such as travel, hospitality, and real estate makes it more vulnerable to global economic shocks, and it does not have the advantage of boosting its coffers through oil revenue like neighbouring Abu Dhabi. (Reporting by Mahmoud Mourad and Rachna Uppal; Editing by Emelia Sithole-Matarise)

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