Dubai to Cope With Debt After Assistance, DIFC’s Saidi Says

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Dubai can manage its debt after receiving financial assistance and because of access to funds originally allocated for infrastructure projects, said the chief economist of the Dubai International Financial Centre.

“The financial assistance from the central bank and Abu Dhabi means Dubai is not under specific pressure when it comes to its debt,” Nasser Saidi told reporters in Dubai today.

The central bank, the Abu Dhabi government and two Abu Dhabi-based banks pledged $20 billion last year to support Dubai’s companies after global credit crisis cut access to funds. The bulk of the emirate’s budget is no longer spent on infrastructure projects, freeing up funds to deal with its debt, Saidi said. Five years ago, the sheikhdom spent more than 60 percent of its budget on infrastructure development, he said.