Dubai’s outstanding debt is estimated at around $34.1 billion but it remains manageable as it accounts for only around 38 per cent of the GDP and the emirate’s economy appears to be rebounding, a key Saudi bank has said.
Over half of that debt, or around $18.5 billion, is taken on to finance the Dubai Financial Support Fund which has used the money to provide finance to Dubai’s government enterprises (GREs), specifically Dubai World & Nakheel, the Saudi American Banking Group (SAMBA) said in a five-page study on Dubai.
In theory these GRE’s have until 2014 to repay the DFSF through asset sales and their own revenues, the report said, adding that this should allow the government to meet the $20 billion spike in debt repayments in 2014 when its borrowings to fund the DFSF mature.
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