Dubai’s state-owned companies should be able to raise new loans to help repay about $10 billion of debt due this year, the head of Standard Chartered Plc’s (STAN) unit in the United Arab Emirates said.
The issue of government-related entities “debt remain and they still have to be worked through,” Jonathan Morris, the bank’s chief executive officer for the U.A.E. told a news conference in Dubai today. “We think the government is doing all the right things and exploring all options” and “I don’t see why” they won’t be able to roll over their debt, he said.
Investors have been concerned about the ability of DIFC Investments LLC, an owner of properties in Dubai’s financial center, to repay a $1.25 billion Islamic bond due in June as well as that of business park operator Jebel Ali Free Zone FZE, which must pay a 7.5 billion-dirham bond ($2 billion) in November. Dubai’s state-related companies have about $10.3 billion of debt maturing this year, Bank of America Corp. Merrill Lynch estimated in October.
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