The Dubai skyline is seen from the observation deck at the Burj Khalifa, the world’s tallest building, in Dubai. The total outstanding external term borrowings of the Dubai government stood at 115.4bn UAE dirhams ($31.4bn) as on May 20, in addition to which the government also has financial contingencies and extended guarantees, according to an investor presentation made on Friday by the emirate’s department of finance. On Thursday, the debt-laden emirate said it plans to test credit-market sentiment again and issue a dollar-denominated, benchmark-sized bond, amid signs that confidence in Dubai’s economic fundamentals is slowly returning. Dubai’s department of finance has appointed UBS, Royal Bank of Scotland Group and Emirates NBD for a dollar-bond issue under its EMTN programme. Proceeds will be used for general budgetary purposes. A series of meetings with fixed-income investors will take place in London on Monday and Tuesday, with the bond expected to launch and price thereafter, subject to market conditions, according to a banker familiar with the matter. Dubai’s nominal GDP was 300.8bn dirhams in 2010 and its total direct debt/nominal GDP ratio equates to about 38%, according to the presentation, which was seen by Zawya Dow Jones on Friday.
