The government has fully settled a USD 500 million sovereign sukuk issued to the international financial market in 2021, utilising capital drawn directly from the Sovereign Development Fund and official reserves.
The final disbursement totalled USD 524.68 million, an amount comprising the USD 500 million principal and USD 24.68 million in accumulated profit. Government officials stated that the successful fulfillment of this obligation is expected to effectively reduce the state’s overall debt-to-gross domestic product ratio.
The financial instrument was initially sold by the previous administration to repay a USD 250 million ‘Sunny Side’ bond undertaken by a prior government. Since assuming office, the current leadership has introduced stringent fiscal measures to manage sovereign debt without placing an undue burden on the domestic economy, including redirecting foreign currency deposits into the Sovereign Development Fund and restructuring airport development fee rates.
As a consequence of these policies, the fund’s foreign currency balance has surpassed USD 350 million for the first time, while official reserves climbed to USD 1.3 billion by the end of March. Official records indicate this marks an unprecedented milestone in the country’s history.
With the sukuk settled, the government underscored that its priority remains the uninterrupted provision of essential services. Officials also noted that negotiations with the Abu Dhabi Fund for Development to roll over a USD 100 million bond maturing this month have been completed, as the administration seeks to align monetary policies with global dynamics to sustain fiscal stability.