Dubai Reduces Dh47 Billion Debt as IPOs and Corporate Tax Fuel Revenue Growth

Dubai’s economy has seen a robust recovery since the pandemic, with all sectors experiencing exponential growth. As a result, the Dubai Government has successfully paid off over Dh47 billion in debt, according to a new report released on Wednesday.

Global rating agency S&P highlighted that the emirate repaid Dh40 billion in debt during 2022-2023 and an additional Dh7.1 billion in bonds. This significant reduction is expected to bring Dubai’s general government debt down to 34% of its GDP by the end of 2024, compared to 70% in 2021.

S&P noted that the government’s debt repayment included a Dh20-billion loan from Abu Dhabi and the Central Bank of the UAE and Dh7.1 billion in bonds. This debt reduction has been supported by Dubai’s booming economy and strong revenue streams, including the introduction of a 9% corporate tax.

In addition to the tax, the government has monetized several of its assets through IPOs over the past two years, raising approximately Dh33 billion. Major listings included partial sales of Dewa, Salik, Empower, and Tecom. With more companies scheduled to go public, Dubai could see further financial boosts, helping to reduce debt or fund significant projects like airport expansions.

Dubai’s gross government debt is expected to decline further, with S&P predicting fiscal surpluses from 2024 to 2027 and no additional debt issuances during this period. However, funding for large-scale projects such as the Al Maktoum Airport expansion and the Tasreef rainwater drainage system remains uncertain in terms of timing and government participation.

Gold Prices in Dubai Reach New Heights as 22K Hits Dh304 per Gram

Gold prices in Dubai surged to an all-time high on Friday, driven by a global increase that saw gold surpass $2,700 per ounce. According to the Dubai Jewellery Group, 24K gold rose by Dh2.50, now priced at Dh328.25 per gram. Meanwhile, 22K gold hit Dh304 per gram, with 21K and 18K priced at Dh294.25 and Dh252.25 per gram, respectively.

Chris Weston, head of research at Pepperstone, noted that gold bulls are closing the week with renewed confidence after major price milestones were broken. The breakthrough above the $2,700 mark has left sellers absent from the market, further driving prices up.

Weston acknowledged the rapid rise in gold’s value, commenting on the steady demand for this safe asset amid market volatility. While gold’s price movement lacks the volatility seen in cryptocurrencies, its stability appeals to risk-averse investors.

Deenar’s co-founder, Maruf Yusupov, highlighted gold’s strong performance in recent months, achieving multiple record highs. He credited this growth to central bank policies and regional conflicts, which have boosted investor sentiment towards gold as a reliable safe haven.

As of Friday, the global price of gold stood at $2,708.44 per ounce, marking a 0.55% increase.

UAE Pioneers Palm ID Technology for Payments: Goodbye Cards and Apps

In a groundbreaking move, the UAE is set to become the first country in the Middle East to introduce ‘Palm ID’ technology for payments and cash withdrawals. Soon, residents won’t need credit cards, mobile apps, or traditional payment methods. Instead, a simple palm scan will complete transactions.

This cutting-edge technology is being developed by the Federal Authority for Identity, Citizenship, Customs, and Port Security (ICP) and is currently in the final stages of development. It aims to link residents’ palm vein biometrics to their personal profiles, offering a faster, more secure, and seamless experience for accessing services and making payments.

Unveiled at Gitex Global 2024, Palm ID is part of the UAE Vision 2031 initiative. The technology will be available in public and private sectors, allowing residents to pay bills, withdraw cash from ATMs, and even access metro stations by scanning their palms instead of using cards.

Palm ID offers a less intrusive alternative to facial recognition technology, as the unique patterns of each person’s palm veins ensure security and privacy. Registration will be simple—residents can link their biometrics to their Emirates ID or other official documents through the ICP platform.

The UAE is expected to roll out Palm ID once the regulatory framework is completed, marking a new era in smart living and digital innovation.