Categories

IMF backs Dubai debt proposal

The impact of the $23.5-billion (Dh86.24 billion) Dubai World and Nakheel debt restructuring plan will be manageable for UAE banks, analysts say. The Dubai Government on Thursday announced a comprehensive set of proposals for Dubai World creditors represented by 97 banks and financial institutions for the repayment of the debts, including a 100 per cent […]

Insuring Dubai debt costs more

Uncertainty about Dubai World’s $22 billion debt restructuring is starting to weigh on the credit, pushing up bond yields and Dubai’s debt insurance costs, according to Reuters. Five-year credit default swaps (CDS) for Dubai have risen sharply in the past week and are now quoted at 510 basis points (bps), up about 45 bps on […]

IMF revises UAE projections

The International Monetary Fund has revised downwards its economic projections for the United Arab Emirates, forecasting flat growth this year as Dubai’s moribund real estate market and debt restructuring drag on continuing growth in the oil-rich capital of Abu Dhabi.

Dubai’s total debt obligation could be as high as $170 billion, according to a report by EFG-Hermes regional investment bank. A copy of the bank’s 2010 UAE Yearbook, seen by news agency AFP, says that Dubai’s government-related entities could have racked up debts “in the range of 130-170 billion dollars”.