We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Mon 9 Nov 2009 01:04 PM

Font Size

- Aa +

Dubai ruler says worst of crisis is over

UPDATE 2: Sheikh Mohammed also lauds relations between Dubai and Abu Dhabi.

The global financial crisis has not hampered Dubai's ambitions, its ruler said on Monday, adding the Gulf emirate had passed the worst of the economic downturn.

Sheikh Mohammed bin Rashid al-Maktoum, who is also prime minister of the UAE, said he had full confidence in the Dubai's ability to act in the global market.

"The worst is over and Dubai is now well-placed," he said in a speech to investors. "The global economic crisis, despite its impact, will not deter Dubai's ambitions."

Dubai's economy has been hit hard as the global credit crunch and a steep decline in crude prices ended a six-year boom in the region and sent the emirate's property sector into decline.

Sheikh Mohammed added that real estate was not the only driver of Dubai's economy.

He said the second tranche in Dubai's $20 billion bond programme will "receive subscribers", and will be used to settle its future obligations.

The remarks by Sheikh Mohammed suggested the second tranche would not be purchased entirely by the UAE central bank, which bought the first $10 billion tranche.

"The second tranche of the bond programme will receive subscribers and will be used to settle Dubai's obligations in future," said Sheikh Mohammed, speaking at the investment meeting organised by Bank of America-Merrill Lynch.

Dubai raised $10 billion in emergency cash from the UAE's central bank earlier this year through a bond issue as part of a plan to raise a total of $20 billion, setting up a support fund to manage the proceeds.

The ties between Abu Dhabi and Dubai should not be questioned, Sheikh Mohammed added, saying the two wealthy emirates were one "family."

Abu Dhabi is the biggest and richest in the seven-member UAE federation, and the main contributor to the federal budget.

Wide speculation that Abu Dhabi would be obliged to support Dubai through the global crisis - either through the federal stimulus programmes or secret, bilateral deals - led to talk of increasingly strained relations between the two.

"There is no Dubai and Abu Dhabi, we are one," he said.

"Who doesn't understand this should do their homework before they start talking," he said.

"We will be there for each other when we need it."

"And I want to tell those people who nag about Dubai and Abu Dhabi to shut up." (Reuters)

Arabian Business: why we're going behind a paywall

Hany Ayesh 10 years ago

I love you Dubai! God Bless the United Arab Emirates and Long Live! What doesn't break Dubai can only make it stronger!

Jennifer Grebe 10 years ago

The words of His Highness should be an encouragement to all, especially those who see only gloom in the future. Though the Crisis hit every nation on this earth it seems that there are many who would love to see Dubai fall... even those who live here and reap the benefits of this land and the truly quality life it has to offer... If there are those who disagree that Dubai is truly a great place to live in; they need to understand that life is what they make it…. and the country is not to blame for that. Those who criticize should stop to think that it took forward thinking to develop this nation into what it is today… and its Leader, His Highness Sheikh Mohamed is not about to let it fall as expected by many… my prayers are that Dubai will get back to what it was….. which is what is rightfully its due; glory… this is a glorious nation and we expats are blessed to have an opportunity to live here… so instead of condemning this country and looking forward to gloom and doom, everyone needs to be optimistic and hope and pray that we are out of the hard times and the best is yet to come…. and will come.

Pat Davis 10 years ago

Way to go Dubai!

Sami 10 years ago

For every publication from the Financial Times, Sunday Times, New York Times, Sydney Harold and even the sleezy Daily Mirror and Sun that overlooked the whole world and kept knocking Dubai...... Eat your hearts out....Dubai is back....better and stronger than ever before.

Zak Wehby 10 years ago

Dubai is the mother of all cities in this part of the world. Nothing comes close to it anywhere from Rome to Singapore. I am delighted to here your assurances. God Bless!

Anil 10 years ago

This is a Godly statement and we are extremely delighted His Excellency. God bless Dubai . Thanks a lot.

Mr Sensible 10 years ago

Let's not get too carried away here people. Whilst nobody can deny that the rise of Dubai in the last 40 years has been an incredible story, we should also learn from what has happened in the last year and not repeat the same mistakes. The excesses in Dubai in the last 4 years were extreme: the biggest selling Porsche dealership in the world, most number of Bugattis in the world, most expensive cocktail in the world, the list is endless. Dubai will recover but hopefully with a new maturity and the ability to grow within it's means. Dubai should not look to Abu Dhabi only for financial assistance but also learn from it's older brother how to grow at a steady and sustainable rate. Dubai looking for outside subscribers for the second tranche is surely a good sign if it is able to stand on it's feet again and not have to rely on the UAE central bank. A word of caution though, this is to settle obligations, not fund additional growth. For the recovery of Dubai this is not the end, this is not the beginning of the end but it is the end of the beginning.

Saiyed 10 years ago

Is Dubai really back, meaning due to crises in US i have been trying very hard for job in Dubai but no success.

GEORGE JOHN 10 years ago

AS LONG AS GODFEARING AND HELPFUL TO POOR AND NEEDY RULERS LIKE H.H. SHEIKH KHALIFA BIN ZAYED AL NAHYAN AND H.H. SHEIKH MOHAMMED BIN RASHID AND ALL THE SUPREME COUNCIL MEMBERS RULING THIS GREAT NATION AND FOLLOWS THE FOOT STEPS OF THEIR FATHERS GOD WILL NEVER LET DOWN THIS BELOVED COUNTRY. MILLIONS OF PEOPLES AND POOR FAMILIES ARE PRAYING FOR THIS GREAT COUNTRY AND RULERS.

Jochen 10 years ago

A strong speech, in my opinion, which recalls Dubai's and the UAE's vision since it's founding fathers. HH is right, nobody thought Jebel Ali, Emirates Airlines, DXB etc. etc. was possible.The developed economies prefer to deal with weak systems, battled by internal strive. To go ahead and develop the UAE was clearly the best thing to do. The only way not to fall back is to keep pushing forward. This is what the UAE and Dubai is doing. Also: I greatly appreciate HH's statement, that the crisis is a time of pause and reflection. Pausing and reflecting is necessary in any great enterprise.