Dubai Department of Finance says it has repaid a $500m fixed rate note in full as it matured on 5 October.

The debt was issued on 4th October 2010 under its $4bn medium-term note programme

“This settlement reaffirms the Dubai government’s commitment to deal with its repayment obligations in a proactive manner,” said Abdulrahman Saleh al-Saleh, director-general of the Department of Finance.

Dubai’s debt levels became a worry following the collapse of the real estate market in 2008. Billions of dollars in debt was taken on by government-related entities such as Dubai World and Nakheel, which had to be restructured.

The total debt reached $141.7bn, or 56.3 per cent of GDP, in 2014, but has since reduced. Confidence is growing that Dubai can manage its debt burden through divestment and refinancing deals.

Dubai issued $750m of sukuk (Islamic bonds) in 2014, $1.25bn of sukuk in 2013, and a $650m bond in 2012.