Sunday, 18 December 2011

Tough year ahead as Dubai faces financial hurdles - The National

Dubai's financial supremos will have one subject at the head of their agenda in the next 12 months - trying to keep the emirate on top of a demanding schedule of debt repayments in tough financial times.


It is becoming an annual challenge. Ever since the Dubai World crisis of 2009, when the property developer sought to restructure some US$25 billion (Dh91.82bn) of debt, the emirate's financial strategists have struggled with the debt problem, a legacy of the incredible property-fuelled boom years between 2002 and 2008.


So far, they have managed to stay on track through a mixture of hard-nosed deals with creditors, extending the terms of repayment of some, and meeting other repayments, mainly to bondholders, on time and in full. They also had the benefit of a cash injection totalling $20bn from energy-rich Abu Dhabi.


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