Monday, November 10, 2008

Dubai to create central management system for its government and state-owned entities

Khaleej Times:
Dubai is comfortable with payments due on its debt for the next couple of years because the value of its assets far outstrips obligations, Mohammed Alabbar, Member of the Dubai Executive Council and Chairman of Emaar Properties told the closing session of the World Economic Forum’s first-ever Global Agenda Summit on Sunday.

Alabbar, who was also the co-chairman of the summit held in Dubai, said the emirate was planning to create a central debt management system for the government and state-owned entities to manage the debt.

“The Government of Dubai is fully covered to service its debt for the next seven quarters,” he said.
“For several analysts, the Dubai Inc. story is tied in to its real estate sector. They miss the mountain for the hill. True, the real estate and construction sectors are key growth drivers. But let us not forget the big picture. The Dubai economy is driven by traditional sectors such as re-exports and trading; tourism and retail; transportation and logistics; manufacturing; the free zones and the business hubs for IT, media, financial services, education and healthcare. These are the sectors that drive real demand.”

He said demand for real estate continues to outstrip supply, and that will be the case for several years to come because of the region’s economic resilience.



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