Dubai International Financial Centre (DIFC) has announced the successful and timely redemption of its $700 million sukuk, a significant step in its sustainable financing strategy. The full repayment underscores DIFC’s commitment to responsible financial practices and positions the Centre as a model for financial robustness and stability.
The sukuk, issued in 2014, was instrumental in funding DIFC’s expansion, including infrastructure enhancements and the development of Gate Avenue, a key retail and business attraction. The initiative aligns with DIFC’s long-term strategy of fostering economic growth through premier commercial real estate offerings, making it the leading business and financial hub in the region.
Essa Kazim, governor of DIFC, emphasized the significance of this repayment in demonstrating DIFC’s financial strength. “The full repayment of the 2014 sukuk on schedule showcases the organization’s financial strength,” he noted. Kazim also highlighted how a decade of strategic investments has solidified DIFC’s position and its appeal to companies seeking to establish or broaden their presence in Dubai. “We are continually enhancing our real estate offerings to meet the growing demand from businesses,” he added.
The repayment reflects DIFC’s prudent financial policies aimed at reducing borrowing costs, optimizing debt efficiency, minimizing refinancing risks, and ensuring a robust cash flow from its core operations. These measures contribute to the Centre’s medium- and long-term financial stability and reinforce its reputation for effective financial stewardship.
DIFC’s sukuk issuance was channelled through DIFC Investments, supporting various development projects, including Gate Avenue. The Centre’s strategy for financial management extends beyond infrastructure. DIFC has maintained a disciplined approach to spending on all its projects while diversifying its revenue streams and optimizing its use of available financial instruments. This prudent financial management has allowed it to sustain growth and capitalize on emerging market opportunities while maintaining a sound fiscal foundation.
The completion of this sukuk repayment represents a significant achievement for DIFC, demonstrating its ongoing commitment to responsible and innovative financial management. As it continues to evolve, DIFC remains dedicated to creating a world-class business environment, attracting enterprises from around the globe and supporting the growth of Dubai as a global economic powerhouse.
