Dubai’s pledge to adopt global standards on transparency and creditor protection is a “giant step in the right direction” and the worst of the emirate’s debt crisis is over, investor Mark Mobius said.
“They said that going forward they wanted to become more transparent and keep people fully informed,” Mobius, who oversees more than $30 billion as chairman of Templeton Asset Management Ltd., said in a phone interview from Riyadh today. “That is a very giant step in the right direction. By making that statement, Dubai will be able to have a foremost position here in the Middle East.”
The emirate said it’s committed to “transparency, good governance and market principles” in a statement today that announced a new bankruptcy law and a $10 billion bailout of state-owned company Dubai World. Dubai’s benchmark equity index surged the most in 14 months, while the $3.52 billion bond of state-controlled Nakheel PJSC more than doubled to 109.5 cents on the dollar after the statement.
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