Dubai debt to 113 billion dollars worth to 2016 Dubai struggling to overcome crisis
Report of the Samba Bank: Dubai debt up to 113 billion dollars worth up to 2016 Dubai struggling to overcome a debt crisis
January 18, 2016 4:53 pm
A recent report revealed the research unit in Saudi Bank Samba that Dubai's total debt surpasses $ 113 billion, the Emirate will have to be repaid until 2016, indicating that the market may not be in the interest of fulfilling those obligations financial benefits.
The report said that the debt owed by Dubai Government entities up to 31.5 billion dollars, or 38% of total GDP for the Emirate, was half of the Fund for financial support in the wake of the outbreak of a debt crisis, the support of Government-linked companies, including Dubai World and Nakheel,
And financial liabilities amounted to parastatals, such as Dubai holding, to 77 billion, which constitutes a source of risk may lead the Government to request more loans, according to estimates by "Samba". Which indicates that the collection of all obligations on State enterprises and parastatals will be the ratio of debt to GDP 130%.
And government debt directly, remain searchable llsterh in terms of risk management, consider a ratio of debt to GDP of the Emirate, but the main obstacle in managing commitments owed by Dubai Government-linked companies ' debts, according to the International Monetary Fund and supported by Samba Bank report.
Dubai must pay requirements $ 30 billion to creditors in 2011 and 2012, it means that the Emirate will need to refinance debt and loans, and the option to sell assets to raise money soon to reality, under these circumstances, according to the Bank report.
While risks surrounding Dubai's ability to overcome the obstacle of debt accumulation in the shadow of the global economic downturn, Research Unit believes in "Samba" Bank of the future Outlook for Dubai's economy doesn't sound like grim with the return of confidence in the business climate improved in the Emirate, and the beginning of the revival of the non-oil sectors, while rescheduling and refinancing debt solution to keep pressure on the financial resources of the Emirate.
The report adds to recent Federal Government decision to extend the period of stay for real estate buyers from 6 months to 3 years, subject to renewal would give a boost to the property sector vital to the economy of Dubai.
In addition, the debt markets began to change from Outlook to Dubai, where the issuance of government bonds worth 500 million dollars in recent large turnout and was closed successfully.