We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Mon 6 Apr 2020 03:11 PM

Font Size

- Aa +

Dubai in talks to raise funds as shutdown weighs on economy

Dubai has a $750m bond maturing next month and last raised money from debt investors through an Islamic bond in 2016

Dubai in talks to raise funds as shutdown weighs on economy

The emirate’s Department of Finance is holding discussions with banks about a potential bond sale or loan.

Dubai is in talks to raise funds to shore up its finances as the deadly coronavirus shuts down much of the economy, according to people familiar with the matter.

The emirate’s Department of Finance is holding discussions with banks about a potential bond sale or loan, the people said, asking not to be identified because the information is private. Talks are at an early stage and no final decision has been made, they said.

A representative for Dubai’s Department of Finance declined to comment.

The Middle Eastern business and travel hub - like many other cities around the world - is in full lockdown as it seeks to halt the spread of the virus. Dubai is especially vulnerable as the city relies heavily on tourism and trade.

Its flagship Emirates airline has grounded passenger flights and the Expo 2020 Dubai exhibition, scheduled for October, is set to be delayed by a year.

Emirates bailout

The government has committed to inject an undisclosed amount of equity into state-owned Emirates and has unveiled $408 million worth of incentives to support companies. Dubai has a $750m bond maturing next month and last raised money from debt investors through an Islamic bond in 2016, according to data compiled by Bloomberg.

The United Arab Emirates, of which Dubai is a part, last month unveiled a AED50 billion ($13.6bn) aid package for banks through collateralized, zero-interest loans. Lenders are also allowed to free up capital buffers, which will make another AED50bn in liquidity available.

The central bank on Sunday unlocked new aid to support lending and liquidity, and slashed reserves requirements after business conditions worsened at a record pace as the virus shut down much of the economy in March.

The UAE has reported 1,799 coronavirus cases, with 10 deaths.

Arabian Business: why we're going behind a paywall