Dubai faces $48bn of debt maturities between 2014 and 2016 but, unlike the crisis in 2009, is better equipped to handle redemptions due to an economic rebound, Standard Chartered said in a research report yesterday.
In the note, the UK-based lender said Dubai, propelled into the global limelight three years ago after asking for a $25bn debt restructuring for one of its flagship investment vehicles, has made little progress on raising cash from asset sales and the emirate’s overall debt burden remains a challenge.
The report added that sovereign debt has ballooned in a very short space of time, as the government borrows to support its entities and invest in infrastructure projects, with government debt accounting for about 30 percent of Dubai’s total debt.
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