Dubai ‘Confident’ of Repaying Debt, Sheikh Ahmed Says

Dubai, the Persian Gulf emirate whose state-related companies must repay at least $4.52 billion of loans this quarter, is “confident” of repaying its debt, Sheikh Ahmed bin Saeed al-Maktoum, chairman of Dubai’s Supreme Fiscal Committee, told reporters today.

Dubai, the second-biggest of seven sheikhdoms that make up the United Arab Emirates, and its state-related companies ran up debt of $80 billion over the past few years to fund its transformation into a tourist and financial services hub. State- owned developer Nakheel PJSC, which is building palm-shaped islands off the emirate’s coast, needs to repay an Islamic bond of $3.52 billion in December, while Dubai Global Sukuk, a Department of Civil Aviation-backed entity, has to repay a $1 billion bond.

The emirate borrowed $10 billion from the U.A.E. central bank in February to help state-related companies facing problems raising cash amid the global credit crunch. Dubai’s Department of Finance is seeking to raise another $10 billion.