Dubai ruler’s firm vows to repay $500M in debt

January 25, 2012 GMT

DUBAI, United Arab Emirates (AP) — An investment company owned by Dubai’s ruler says it will repay $500 million in bonds next week, distancing itself from other debt-laden firms in the Gulf emirate.

Dubai Holding Commercial Operations Group confirmed Wednesday it will repay the bonds on Feb. 1, using funds from its internal cash flow.

The firm is a division of a company known as Dubai Holding that is controlled by Dubai ruler Mohammed bin Rashid Al Maktoum.

DHCOG owns the Jumeirah hotel chain and other investments, including a division that runs many of Dubai’s free-trade zone business parks.

Dubai has been slowly chipping away at its debt load since its severe credit problems sent tremors through global markets more than two years ago.

(This version CORRECTS name of parent company to Dubai Holding.)