Dubai Should Coordinate With U.A.E. Over Future Debt, S&P Says - Bloomberg.com

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Dubai should consult with the United Arab Emirates’ authorities before its government-owned companies issue debt, Standard & Poor’s said.

Dubai triggered a debt crisis last year after amassing more than $100 billion in borrowings. The emirate plans to centralize the debt strategy of its state-run companies, Sheikh Ahmed Bin Saeed Al Maktoum, chairman of the Supreme Fiscal Committee, said yesterday. Debt management offices will be set up at both, a federal U.A.E. and Dubai level, he said.

“There needs to be coordination taking place at a federal level,” Jan Plantagie, Dubai-based regional head of S&P in the Middle East, said in a phone interview today. “Recent experience shows that one market impacts the other.”