Oil-rich capital may aid Dubai in meeting its refinancing needs, British lender says
Dhabi, the capital of the United Arab Emirates and home to 90 percent of the
country’s oil reserves, might offer more fiscal aid to sister state Dubai to
help refinance maturing debt, Barclays Capital said.
higher oil prices and production replenishes the coffers in Saudi, Kuwait and
UAE on improving fiscal and external balances, we would not rule out oil-rich
Abu Dhabi supporting Dubai in meeting some of its refinancing needs to avoid
negative headlines and confirm its solidarity with other emirates,” Alia
Moubayed, London-based senior economist for the firm, said in a research report
Dhabi agreed a $20bn deal with Dubai after Dubai World, the state-owned holding
company, roiled global markets by seeking to alter terms on about $25bn of debt
following the 2008 property crash.
and its government entities have about $18bn of loans coming due in 2011, Shady
Shaher of Standard Chartered Plc said in December.
UAE and neighbouring countries are benefiting from oil prices that have risen
19 percent this year, reaching a 2011 high today of $109.15 a barrel, as
conflict raged in Libya and protests gripped countries from Morocco to Bahrain.
UAE is home to about seven percent of the world’s oil supply.
and its state-owned companies ran up debt of at least $129.3bn, according to
estimates by Credit Suisse Group AG, as the emirate, lacking Abu Dhabi’s oil,
developed its property, tourism, trade and financial-services industries. Dubai
World signed a final deal with creditors March 23, marking the end of the
refinancing risk, which has preoccupied markets for the past 18 months, has
moved to the background, as Bahrain’s mounting political risk comes to the
fore,” the report said.
$18 billion US of loans due this year? Does Dubai have this type of cash lying around anymore? Limitness has just rolled over for the 4th time on its debt obligations. We keep reading how Dubai World is now fine but its hasn't even started paying back the money it borrowed. Dubai has a long way to go before people can say it is back.
Interesting to see what the response will be from "the powers that be". No big surprise if it is either a statement of denial or another that Dubai is booming. Transparency would assist the reputation and global standing of the Emirate as "dubai Incorporated".
It would be interesting to know where the first money has gone. I don't believe these people have a clue how to fix the mess. Abu Dhabi and all arab countries do not trust to invest money in their own countries. Look at the stock markets. They haven't gone anywhere in this region. It's more then 2 years we are reading always the same stories, the same promises.