Dubai gets $8b finance from Citi

Dubai: Citigroup Incorporated has arranged more than $8 billion (Dh29.3 billion) finance for various Dubai government entities in recent months, the global banking group said.

"This is in line with our commitment to the UAE market in general, and reflects our positive outlook on Dubai in particular," said Citi's chairman, Sir Win Bischoff in a statement.

Officials familiar with Citi's recent deals with Dubai entities said the amount is an aggregate of about half a dozen deals Citi did with Dubai's public sector entities during the past few months.

"We continue to place the Gulf region among our globally most significant markets, and we certainly see opportunities across all of the UAE's financial sectors. In the last 2 years, we've participated in most major financing transactions across the region including the UAE," Bischoff said.

Citi's renewed commitment comes amidst speculation on Dubai's sovereign debt obligations.

Late last month Mohammad Al Abbar, chairman of the Advisory Council of Dubai's government and chairman of Emaar Properties, stressed that the government was capable of meeting all its obligations.

According to the council's estimates, the government's sovereign debt stood at $10 billion, while its assets, excluding key infrastructure installations were more than $90 billion.

The total debt of government-affiliated companies is estimated at $70 billion, while assets are valued at $260 billion.

While the government has clarified its ability to meet all its debt obligations, analysts view the renewed support by international financial houses as a strong vote of confidence in Dubai's financial strength despite the global financial turmoil.

"We are quite positive about the UAE's prospects and Dubai in particular as one of the world's fastest growing international financial centres.

"This is evident in our decision to move our headquarters for the region to Dubai, and to strengthen our regional coverage teams through key appointments based at the DIFC," said Mohammad Al Shroogi, Citi's UAE chief executive and managing director for the Middle East.