Dubai, the Gulf emirate that own stakes in London Stock Exchange and Nasdaq OMX, may have to sell assets to help fund about $80 billion of debt maturing in the next five years.
The emirate home to the world’s tallest skyscraper may also step up bond sales to refinance debt after the United Arab Emirates central bank enacted rules forcing domestic banks to curtail loan exposure to government-related enterprises known as GREs, according to economists at Bank of America Merill Lynch and National Commercial Bank of Saudi Arabia.
In its pursuit to transform into a tourism, trade and transport hub, Dubai amassed publicly held debt amounting to 149 per cent of economic output in 2011, Bank of America Merill Lynch estimates show. Even after successful debt restructurings in the past year, including a deal on $25 billion of Dubai World debt, Dubai’s liabilities through 2017 may spur asset sales to lessen the burden, said Sergey Dergachev, who helps manage $8.5 billion of emerging-market assets at Union Investment Privatfonds.
No comments:
Post a Comment