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Dubai financial situation

More careful with development in Dubai

Sep 13, 2009

Dubai will consider small changes to its development strategy and be more careful in the future as a result of the financial crisis, Sheikh Mohammed bin Rashid Al Maktoum said yesterday.

The Vice President of the UAE and Ruler of Dubai said the global crisis had yet to run its course but that financial headwinds were easing on the cash-strapped state and that Dubai was sound.

“I don’t think we made any mistakes,” he told reporters at a briefing. “Our strategy will be really the same but things will change a little bit because of this crisis and we will be more careful now.”

Dubai enjoyed more than six years of rapid economic growth because of rising oil prices but suffered from a cash shortage under the financial crisis that saw property prices decline and expatriate workers leave.

Sheikh Mohammed said Dubai would be “more careful about doing the right projects” in future.

The emirate and state-linked firms have outstanding debt of about $80 billion (Dh293bn), much of it incurred during a drive that saw Dubai expand activities in logistics, financial services, property and luxury retail and tourism.

Dubai raised $10bn in emergency cash from the UAE central bank early this year and plans to follow that with another $10bn to fund obligations still pending.

More careful with development in Dubai

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