Since the Dubai World crisis of 2009, some broad strategic elements have emerged in the approach of the emirate's financial authorities towards debt: for example, bond and sukuk obligations have been met in full and on time, whereas bank creditors have, largely, been asked to come up with a new term sheet.
Topic Dubai Holding Islamic finance Dubai World Dubai Amlak
Apart from that fairly consistent distinction in the way bondholders and banks have been treated, Dubai's financial authorities and indebted government related enterprises (GREs) have adapted, improvised and ad-libbed their way through the regular rounds of confrontations between creditors and borrowers.
So far, the tactics have been successful in defusing the debt crisis that at one stage threatened to explode the emirate's financial system. But a critical stage still lies ahead.
Dubai's innovative approach to debt smooths the way - The National
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