Friday 30 October 2009

Dubai bond sale a move in right direction

Dubai’s successful bond sale this week was hailed as an important step towards bringing the debt-saddled emirate back on track, but bankers and analysts warned it still needed to raise more money to meet looming repayments.

The Gulf’s leading business hub has been at the epicentre of a regional downturn, weighed down by a collapse in the real estate market and an estimated $80bn mountain of debt.

Earlier this year Dubai’s creditors were concerned the emirate could default, but thanks in large part to succour from the federal government of the United Arab Emirates – of which Dubai is one of seven autonomous statelets – the emirate is now showing signs of recovering from its malaise.

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