Business | Economy

Dubai set to launch economic stimulus initiative

The Dubai Department of Finances is planning a comprehensive economic stimulus package to help the Dubai economy to cope with the global financial crisis.

  • By Babu Das Augustine, Deputy Business Editor
  • Published: 15:20 February 25, 2009
  • Gulf News

  • Image Credit: Gulf News Archive
  • The money raised through the bond issue will not be used for any new capital expenditure, government’s budget deficit or for capitalizing banks.

Dubai: The Dubai Department of Finances is planning a comprehensive economic stimulus package to help the Dubai economy to cope with the global financial crisis.

“We hope to announce these measures within a few weeks from now. It could include measures such as restructuring of government fees, reduction in cost of licences to support business,'' Nasser Al Shaikh, Director General of Dubai Department of Finance said on Wednesday.

Dubai will use its $20 billion unsecured sovereign bond to support government-linked companies. Particularly the real estate companies that have debt obligations.

Earlier this week the Central Bank of UAE subscribed $10 billlion bonds. The second tranche of the bond issue will be done only when the government feels the need to do so.

“Currently we feel the $10 billion raised through the first tranche is enough to meet the commitments of government entities,'' Al Shaikh said.

"Companies might face difficulties in refinancing. Times are challenging. Now it is up to us to protect our economy'' he said.

The money raised through the bond issue will not be used for any new capital expenditure, government's budget deficit or for capitalizing banks.

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