Just as there were signs that Dubai might be climbing out of its debt hole, Credit Suisse has released a report that puts the size of the emirate’s borrowings above conventional estimates.
Entities 50% or more owned by Dubai’s government and ruler Sheikh Mohammed Bin Rashid Al-Maktoum amount to $129.3 billion, the Swiss bank said in a report dated January 13. It said the debt burden could, in fact, be “much higher than our final numbers owing to the lack of full disclosure.”
The debt of what is popularly known as Dubai Inc, a collection of government and quasi-government businesses and agencies, is usually put at about $110 billion. A restructuring of the debt of Dubai World, the biggest of the Dubai Inc. borrowers, last September brought some improvement in investor sentiment and a handful of bond offerings at the end of last year. But Credit Suisse said it sees new problems ahead in 2011.
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