Dubai is not in default and is in the process of restructuring, Dr Henry Azzam, CEO of Deutsche Bank in the Middle East said on Monday at the Arabian Business conference. “Lets keep it in perspective,” he added. However, he believes that the shockwaves caused by Dubai World’s restructuring is likely to lead to more consolidation of more banks and companies in the region. Azzam believes the banking structure in the region is ‘solid’ and this was evident by the Central Bank offering a liquidity fund for banks in the emirate that need to draw on it. However, he was quick to point out that shareholders of companies in Dubai undergoing restructuring should also share in the pain or else the problems currently being faced will simply be repeated. “Everyone takes part of the blame and part of the pain,” he said. Deutsche Bank saw its shares take a 6 percent fall in the early days of the Dubai debt crisis.
Data from the bank estimates that a total $4.3 billion of Dubai government and corporate debt is due this month and $4.9 billion in 2010’s first quarter.
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