IMF: UAE economy recovering, but debt woes linger | GulfNews.com:
"The UAE is getting an economic boost from tourism and a recovery in its real estate market, but Dubai still has high debt levels, and the emirate should take steps to fix its government budget and avoid another boom-and-bust cycle, the International Monetary Fund (IMF) said in a new report on the country released on Tuesday.
The UAE’s economy grew 4.3 per cent last year and will grow by 3.6 per cent this year, according to estimates in the IMF’s annual Article IV report. But Dubai and its government-related entities still have around $142 billion (Dh521.7 billion) of debt, an amount greater than the emirate’s gross domestic product (GDP).
Against this backdrop, Dubai should improve its government budgeting and rein in its “large and still highly indebted” government-linked companies, the IMF report said. Dubai’s government firms and banks are regaining access to debt through bond sales and loans — their borrowings increased to $93 billion this year from $84 billion in March 2012 — but the IMF says strict oversight of these companies is needed to prevent risk-taking from going overboard."
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