DUBAI – State conglomerate Dubai World, at the centre of Dubai’s debt crisis a decade ago, said on Tuesday it had made a final payment of $8.2 billion to creditors.
The payment, made ahead of its September 2022 maturity, was an ‘important milestone’ for the company and Dubai, Dubai World Chairman Sheikh Ahmed bin Saeed al-Maktoum said in a statement.
‘Once more… our action underscores Dubai’s commitment to always meet its obligations’, said Sheikh Ahmed, who is also a member of Dubai’s ruling family.
The company made the payment using funds from a new $3billion loan from Dubai Islamic Bank, asset sales and dividend payments, it said.
Dubai World, whose assets include global port operator DP World said it had paid $18.9 billion to creditors since 2011.
‘Looking ahead…Dubai World will focus on streaming and strengthening its efforts to deliver long-term value for all stakeholders’, Sheikh Ahmed said.
Dubai World restructured $23.5 billion in debt about 10 years ago after the global financial crisis and collapse in oil prices took its toll on the Middle East trade and tourism hub.