The Dubai government and its entities are facing debts of around $80 billion, and authorities have assured investors that the emirate will meet its financial obligations.
November 11, 2009 3:32 by kippreport
The estimates of Dubai’s entire debt vary; according to Business Week, the debts amount to $90 billion, 126 percent of Dubai’s GDP. The Economist says that the Dubai government along with its entities have accumulated debts of $80 billion in short-term bonds and loans from the across the world. Out of that amount, the government itself has $19 billion to repay.
According to a Deutsche Bank report in August, the emirate and its entities have $15.8 billion bonds and loans maturing this year, $9.2 billion in 2010, $19.8 billion in 2011 and $17.3 billion in 2012. Rating agency Standard & Poor’s has estimated that Dubai has to pay up $47.4 billion by mid-2013. According to investment bank EFG-Hermes estimates, state-owned companies have debts of $13.1 billion due in 2010.