Tuesday 5 July 2011

Dubai's outstanding debt put at $31.4 billion - Maktoob News

The government of Dubai's outstanding direct debt is currently put at $31.4 billion equivalent to 38 percent of the GDP (gross domestic product).

Over half of this ($18.5 billion) is debt taken on to finance the Dubai Financial Support Fund (DFSF) which has used the money to provide finance to Dubai's struggling government enterprises (GREs), specifically Dubai World & Nakheel. In theory these GRE's have until 2014 to repay the DFSF through asset sales and their own revenues.

This should allow the government to meet the $20 billion spike in debt repayments in 2014 when its borrowings to fund the DFSF mature, according to Samba Financial Group's Dubai Government Debt Update Note issued on Monday.


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