Dubai’s debt burden to drop to 51% in 2023, says S&P Global

Dubai’s debt burden to drop to 51% in 2023, says S&P Global

Dubai’s government debt load will decline as a share of GDP in 2023, S&P Global said in a report, citing the robust economic growth that is set to benefit from the UAE’s wide-ranging social and economic reforms and support the city’s medium- and long-term economic growth prospects. “We forecast a reduction in government debt to about 51 per cent ($66bn)of GDP in 2023 from a cyclical high of 78% in 2020,” said S&P Global. Dubai has been repaying its debt, including $2.9bn in bonds from 2020 to first-quarter 2023 and reduced its loans from Emirates NBD by 30 per cent over the same period. Should the government continue to reduce nominal debt, S&P Global said the debt stock could fall even quicker. The rating agency placed broader public sector debt, which counts liabilities from non-financial government-related entities (GREs) – around 100 per cent of GDP. The robust recovery of the real estate and tourism sectors should help some GREs to deleverage and reduce rollover risks amid current favourable operating conditions. The components of S&P Global’s gross general government debt estimate for 2023 include 44 per cent in loans from Emirates NBD and 26 per cent in outstanding securities issued by