Tuesday, December 22, 2009

UAE Economy unaffected by Dubai World debt, Minister confirms

The Minister of Economy, Sultan Al Mansouri, today confirmed that the Dubai World debt problems will not affect the projected three percent growth rate for UAE in 201.

Al Mansouri said that it does not really have a huge reflection on the whole economy of the UAE. Taking into account the debt of several other nations across the world, the issue of Dubai World is much smaller in terms of its impact on the UAE economy.

Dubai World debts are small when compared to debts of few other companies, as they are heavier than those of the Dubai Group. The UAE economy is one body and inseparable, Al Mansouri said.

Al Mansouri said that federal government will deal with future Dubai debt issues on a case-by-case basis. He expressed optimism about improvement in the local and world economy in 2010.

The Minister gave his comments when the Dubai World officials held discussions in Dubai with lenders, aiming to restructure $22bn debt. Last week, the Dubai-Government-owned company, helped its real estate subsidiary Nakheel in repaying Dh.15.1bn on a Sukuk or Islamic bond after receiving $10bn from a bond sale to the Government of Abu Dhabi.

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