Sarajevo: Dubai has the money to pay its share of Dubai World's rescue plan and can help other state-linked firms that may be facing "small issues", the vice-chairman of the emirate's top fiscal body said in an interview.
Dubai unveiled a $9.5-billion (Dh34.8-billion) rescue plan for Dubai World last month, as part of its offer to repay creditors of the state-owned conglomerate. The plan relies on Dubai providing $3.8 billion from "internal government resources".
"We have money available, from companies like ICD [Investment Corporation of Dubai], quite big government dividends, so this is not an issue," said Mohammad Al Shaibani, who helps oversee the distribution of aid to state-linked firms through Dubai's Financial Support Fund, set up in the wake of the financial crisis.
Al Shaibani, vice-chairman of the Supreme Fiscal Committee, which reviews debt and spending policies is also head of the Dubai Ruler's Court, the body that coordinates the activities of government departments, and chief executive of ICD, the government's investment arm.
"We've issued a bond earlier, $20 billion - $10 billion plus $10 billion. We have all kinds of resources, so this is not an issue," he said on the sidelines of a conference in the Bosnian capital.
Dubai launched a $20-billion sovereign bond fund programme in February 2009 with the UAE Central Bank taking up the first $10 billion tranche.
Abu Dhabi and a pair of its linked banks picked up the rest.
Dubai's Government owns equity stakes in several listed companies, including ports operator DP World, which proposed a near 20 per cent dividend last month, as well as Dubai Islamic Bank, Emaar Properties and the Dubai Financial Market.
"There is always a possibility of some issues here and there, but nothing unusual," Al Shaibani said. "Overall, we have tremendous growth, and we are doing really very well. We have small issues with some of the companies that over-extended themselves, and real estate-related issues, and we are ready to help them. We are doing this more than comfortably." Al Shaibani said "almost 90 per cent of all restructuring" on Dubai World was complete.
