Thursday 13 October 2011

Dubai can manage $14bn debt with ease - Emirates 24/7

Dubai's government-related entities (GREs) can pay down or refinance nearly $14 billion in debt maturing next year with relative ease, a report by investment bank JP Morgan said on Thursday.

The capital market risk is limited primarily to Jebel Ali Free Zone (Jafza), a unit of state-owned conglomerate Dubai World that is looking to refinance its Dh7.5 billion ($2.04bn) Islamic bond, and the topping up needs of the Dubai Financial Support Fund (DFSF), which are about $2.5 billion to $3.5 billion.

"The $14 billion wall of debt maturities at Dubai GREs next year is not nearly as daunting as the headline number suggests," analyst Zafar Nazim said in a report dated October 12.

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