Dubai, which faces more debt maturities in 2010, may receive more aid from either the UAE federal government or wealthy fellow member, Abu Dhabi, the UAE’s economy minister said on Monday.
Asked whether the UAE government will extend more financial support to Dubai next year, Sultan bin Saeed al-Mansouri said the situation would be evaluated.
“This issue has to be studied in a proper manner, evaluated and based on that, an answer will be provided on the federal level or the local level because the way we see this is one economy not separated from each other,” he told reporters on the sidelines of a conference.
Abu Dhabi offered a $10bn bond to Dubai last week and helped it stave off default on a $4.1bn Islamic bond, or sukuk, issued by state-linked developer Nakheel.
Dubai sent shockwaves through global markets on November 25 when it requested a standstill on $26bn of debts linked to Dubai World and its two property units Nakheel and Limitless.
Dubai World is expected on Monday to ask key creditors for more time to pay off its loans, but leave them none the wiser concerning their prospects of being paid back in full.
Saddled with a $22bn debt pile and in need of restructuring, the Gulf Arab emirate’s flagship company is expected to formalise a request for a payment standstill at a meeting with some 90 creditors at Dubai’s World Trade Center complex. (Reuters)
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