The ghosts of the 2009 crash: Abu Dhabi graciously amends the refinancing agreement for Dubai's $20 billion debt
The signing of these agreements is aimed at boosting the economic recovery the country is witnessing, and would contribute to realisation of the vision of UAE leadership.
The Abu Dhabi Department of Finance and Central Bank of the UAE announced the signing of an agreement on Sunday between Abu Dhabi Government and Dubai Government for refinancing of a $10 billion loan, and the Central Bank of the UAE also signed an agreement for re-discounting of bonds issued by Dubai Government of $10 billion value.
In both cases, the tenure was set at five years renewable, with a fixed interest rate of 1 per cent through the entire tenure.
Shaikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Civil Aviation Department and Chairman of Dubai’s Supreme Fiscal Committee, signed for the Dubai Government, while Hamad Al Hurr Al Suwaidi, Chairman of Abu Dhabi Department of Finance, signed for Abu Dhabi Government, and Khalifa Mohammed Al Kindi, Chairman of the Board of Directors of the Central Bank of the UAE, signed on behalf of the Central Bank.
Shaikh Ahmed bin Saeed Al Maktoum expressed his thanks and gratitude to the President, Shaikh Khalifa bin Zayed Al Nahyan and General Shaikh Mohammed bin Zayed Al Nayhan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, for their continued support of the national economy. He also highlighted that their wise directives and sound steps during the past years were instrumental in enabling the UAE to successfully encounter the economic challenges resulting from the global financial crisis, acting as a major engine for the sustainable economic development the country is currently witnessing.
These agreements are made within the context of its parties continued efforts to boost the competitiveness of the UAE economy on both regional and international levels, and to reflect the upturns Dubai domestic economy has witnessed over the past few years, which played a crucial role in drawing a number of major investment schemes and important events, latest of which was the success of the UAE’s (represented by Dubai) bid to host Expo 2020.
In his statement, Hamad Al Hurr Al Suwaidi, Chairman of Abu Dhabi Department of Finance, said: “The UAE ranks 30th amongst the world’s largest economies, a fact that reflects its significant economic status and role. The signing of these agreements is aimed at boosting the economic recovery the country is witnessing, and would contribute to realisation of the vision of our wise leadership, which aims at supporting sustainable economic development and ensuring prosperity and welfare for the UAE and its people. I would also like to reiterate Abu Dhabi Government’s firm commitment to support and develop the UAE economy to new levels by providing an attractive investment and economic environment which would enhance its competitiveness on both regional and international levels.”
Khalifa Mohammed Al Kindi stated: “Signing of these agreements is consistent with the UAE’s prudent financial policy which aims at supporting and promoting economic growth. We, at the Central Bank, are constantly seeking to maintain a strong economy and a sound banking sector.”
It is noteworthy that refinancing of these loans would further boost growth and prosperity of UAE economy and is expected to reflect positively on the various industrial, commercial and real estate sectors, and hence further establish the UAE’s position as a leading economy on both regional and international levels.