Dubai - Arabstoday
Investment Corporation of Dubai (ICD), the government-owned holding company for some of the emirate\'s most valuable assets, will meet in full its scheduled US$4 billion (Dh14.69bn) of financial liabilities this month. The move will be regarded as a boost to Dubai\'s financial health at a time of global worries. The payments, comprising $2.5bn of conventional and $1.5bn of Islamic financing, will be made on August 21.Mohammed Al Shaibani, the chief executive of ICD, said the news \"demonstrates that as part of the Government of Dubai, ICD is committed and able to meet its debt obligations. This substantial repayment is the result of our strong portfolio of diverse and successful companies across Dubai, as well as the underlying strength of our economy. \"Dubai is witnessing a recovery and remains a stable financial centre. The emirate continues to be an attractive destination for business, tourism and trade and has proven its resilience in recent times.\"The repayments will be made mainly from cash dividends received from ICD\'s operating companies, which include the aviation business Emirates Group, the aluminium manufacturer Dubal, Emirates NBD bank and a stake in the property company Emaar. After the repayment, at group level ICD has a total of $2bn liabilities outstanding, which it promised to repay on schedule in two years.There is also debt associated with the subsidiary companies, which is not guaranteed by the holding company.Earlier this year, analysts at the investment bank Credit Suisse estimated ICD\'s total indebtedness, including that of its subsidiaries, at $24bn, compared with total assets, including stakes in subsidiaries, of $30bn.The $4bn repayment lifts what Credit Suisse called a \"medium-term liquidity risk\". From / The National