Dubai’s government aims to cut spending this year in a bid to shrink its budget deficit after a debt crisis that roiled global markets in 2009.
The government forecasts a gap of 3.78 billion dirhams ($1 billion) this year, down from 5.99 billion dirhams projected for 2010, the emirate’s Media Office said in an e-mailed statement today. That’s “well within” the targeted ceiling of 3 percent of gross national product, it said. Spending is forecast at 33.7 billion dirhams, down by 4.9 percent from the 2010 projection published in a government bond prospectus in September.
Dubai, the second-biggest of the seven United Arab Emirates, had to seek a bailout from neighboring Abu Dhabi after the global financial crisis pushed property prices down by more than half, and frozen credit markets forced some state-owned companies to delay loan payments. Dubai World agreed with creditors in October to restructure $24.9 billion of debt.
No comments:
Post a Comment