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Saturday, 23 January 2010

Dubai Debt Woes Will Hurt U.A.E. Property Industry, Nomura Says

Dubai’s debt crisis has sapped investor confidence and may hurt the property industry in the United Arab Emirates this year, analysts at Nomura Holdings Inc. said in a report today.

“The Dubai government’s announcement of a Dubai World restructuring and debt standstill agreement has put an end to any likelihood of a real estate recovery in 2010,” Nomura said.

Dubai World, one of Dubai’s three main state-owned business groups, said on Nov. 25 that it would seek to delay repaying debt for at least six months, roiling markets in the Middle East and around the world. The global credit crisis led to a 50 percent decline in property prices in the city and hampered the ability of Dubai-based companies to raise loans and refinance.