Dubai clears debt of Dh2.4 billion

Posted on: November 27, 2008

Written by Select Property

Dubai Holding Commercial Operations Group, the holding company of Dubai Holding's real estate, tourism, infrastructure and telecommunications subsidiaries, yesterday said it has repaid Dh2.4 billion of maturing bonds and loans this month, in a move economists say will reassure investors about Dubai's ability to meet its debt commitments.

"Dubai and its entities will see various debt maturing between now and next September and this shows Dubai can meet its obligations," said Dr Nasser Saidi, Chief Economist at the Dubai International Financial Centre.

This announcement follows clarification this week of Dubai's debt by top officials in a bid to end speculation over the emirate's borrowing. The aggregate debt owed by Dubai Government and affiliates now stands at $80billion, while its assets total $350billion.

"The fact Dubai Holding can repay Dh2.4billion of debt from internal cash flow generation demonstrates that it is indeed a solid business," said Chavan Bhogaita, Head of Credit Research for HSBC Middle East.

Dubai Investment Property