close

policy

We would like to invite you to continue a survey you have started. ...

Do you trust your insurer ?

Strongly agree
Agree
Disagree
Strongly disagree
Insurance provides peace of mind
Insurance is purchased only when compulsory
Terms and Conditions (small print) are clear and easily accessible
Insurance jargon (language) stands in the way of fully understanding each policy
Insurance companies try their best to uphold the details of the policy without cutting corners
Reducing risk, cutting costs and profits are more important to an insurance company than the customer
Insurance companies in the region are as professional as in other more developed markets
Gender
Age group
Do you feel your insurance provider works in your interest?
Have you had a rejected claim that you feel was not justified?
Do you trust your insurance provider?
Our Network

Register for our free newsletter

 
 
Latest News

Dubai’s debt saga

Dubai’s debt saga

With the emirate’s total obligations now estimated at $170 billion, analysts say the government may no longer come to the rescue of its related entities.

4

January 20, 2010 6:17 by



Dubai’s actual debt figures could be much higher than previously projected, according to a report by investment bank EFG-Hermes. “The total debt held by Dubai Inc [consisting of the government and government-related entities] could well be in the range of $130-$170 billion,” the bank said in its 2010 UAE Yearbook, according to an AFP report.

There have been many estimates about the size of the emirate’s debt; late last year, Business Week estimated that Dubai Inc’s debts amount to $90 billion; The Economist put the number at $80 billion, out of which the government itself has $19 billion to repay. According to a Deutsche Bank report in August 2009, the emirate and its entities have bonds worth $46.3 billion maturing between 2010 and 2012. Rating agency Standard & Poor’s estimated last year that Dubai has to pay up $47.4 billion by mid-2013.

Dubai’s debt issues came into spotlight after the real estate sector in the emirate crashed because of the global financial crisis. In February 2008, the emirate launched a $20 billion long-term bond program to repay its debts. The first tranche of $10 billion was bought by the UAE central bank as five-year bonds, and in November, Dubai’s ruler Sheikh Mohammed Bin Rashid al-Maktoum said that he was confident that the second tranche would generate adequate interest from investors. “The second tranche of the bond program will receive subscribers and will be used to settle Dubai’s obligations in future,” he said.

However, Dubai announced on November 25 last year that it would ask creditors for a six-month debt delay for government-owned conglomerate Dubai World and its property subsidiary, Nakheel. The news shocked world markets, and the global media immediately began discussing the emirate’s debt burdens.



Pages: 1 2 3

4

Tags: , , , ,

4 Comments

  1. D.Marina on January 23, 2010 11:17 am

    It’s all temporary factors.Global economy is fast improving.Dubai economy will be back to normal soon.

     
  2. SL on January 24, 2010 10:18 pm

    Oh yeah – sure thing ,,,, like the first words from an ostrich on hibernation

     
  3. Andrew on January 26, 2010 10:53 am

    We’re not in Kansas anymore Toto, I mean Marina.

     
  4. Mat on February 1, 2010 10:15 am

    I agree with you Andrew, Marina wake up !!!! The Honeymoon is over!

     

Leave a Comment