CAIRO: Dubai's official officer has said on Tuesday that the government will employ $1.25 billion raised through an Islamic bond “sukuk” last week to fund the expansion of its airport, and sees no risk to repaying creditors at its flagship conglomerate Dubai World on time. Sheikh Ahmed bin Saeed al Maktoum has told Reuters news agency that Dubai will use proceeds from the $1.25 billion sukuk to fund Dubai International Airport expansion, confirming that debt debacle which hit Dubai in 2009 has been resolved. “We are steadily recovering from a 2009 debt crisis, which saw Dubai World stun global markets with plans to delay repayment on $25 billion of debt,” al Maktoum explained. Dubai priced, last Wednesday, a $600 million 5-year tranche at 4.9 percent and a $650 million 10-year tranche at 6.45 percent and the department of finance said the issues drew orders of more than $4.5 billion. Dubai's 2012 budget has a deficit of $498 million, a smaller than 2011, as spending on development projects in the debt-laden Gulf Arab emirate dropped, which is considered a good sign of recovering from debt debacle, which Sheikh Ahmed bin Saeed al Maktoum played a big role in this speedy recovery since 2009.
