By Staff Reporter
Dubai Settles Dh47 Billion Debt Amid Revenue Surge from IPOs, New 9% Corporate Tax
Dubai’s economy is experiencing a remarkable resurgence post-pandemic, with all sectors growing exponentially, according to a recent study released by S&P.
The report highlights significant strides made by the Dubai Government in reducing its debt, having repaid over Dh47 billion in debt and bonds over the past two years.
In the fiscal year 2022-23, Dubai repaid approximately Dh40 billion ($11 billion) in debt, including a Dh20 billion loan from Abu Dhabi and a partial repayment of a $20 billion facility from the Central Bank of the UAE. Additionally, Dh7.1 billion ($1.9 billion) in bonds were settled. As a result, S&P projects that Dubai’s gross general government debt will decrease from 70% of GDP in 2021 to about 34% ($50 billion) by the end of 2024.
The emirate’s robust economic recovery has been bolstered by strong government revenues, partly due to the introduction of a 9% corporate tax. Moreover, Dubai has monetized its assets, generating around Dh33 billion ($9 billion) from the partial sales of several state-owned enterprises, including Dubai Electricity and Water Authority (DEWA) and Salik, the toll operator.
Looking ahead, S&P anticipates fiscal surpluses for Dubai from 2024 to 2027, without the need for additional debt issuances for deficit financing. However, the forecast excludes potential debt for major projects like the $35 billion Al Maktoum Airport expansion and the $8.2 billion Tasreef project, which are still under discussion regarding funding distribution.
News Source: Khaleej Times
