Dubai can rewrite success story: western analyst claims

(20/09/10)

Dubai has to focus on regaining its position as a global commercial and financial services hub following its debt restructuring deal and the emirate has the potential to succeed, says a prominent Western analyst.

George Abed, Senior Counselor and Director for Africa and the Middle East at the Washington-based Institute of International Finance, said the recent debt deal reached with more than 99 per cent of the creditors would support Dubai's economic outlook and urged the emirate to take some measures.

Another Western analyst said the debt agreement could help Dubai retain its core assets and even issue new debt if global economic conditions improve.

Commenting on the agreement to restructure the $24.9 billion (Dh91.4bn) debt, the International Monetary Fund (IMF) said it would take the deal into consideration when it releases its global economic outlook in October.

"The agreement with creditors certainly helps Dubai World's outlook but it does not remove all uncertainties. In order to fully assure markets, the Dubai government related entities (GREs) will need to improve disclosure, reinforce corporate governance structures, and provide a clearer and more credible debt resolution framework."