Dubai must raise funds to feed its mushrooming debt but the Gulf emirate dreads imposing taxes to avoid breaking a business model that helped turn it from a lazy fishing town to a regional trade and tourism hub.
Selling some prized assets appears to be an easier option.
Dubai, one of seven members of the United Arab Emirates federation, and state-linked firms owe an estimated $80 billion of debt borrowed to fuel a boom, when Dubai branded itself as a tax-free destination for foreign workers and businesses.
Now, scrambling to rebuild its image after a $26 billion debt bombshell last month that was poorly managed, the emirate is unlikely to risk another public relations black eye by imposing taxes at this juncture.
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