UAE's captains of industry stay the course

Dubai: Dubai's business community welcomed the announcement yesterday that property developer Nakheel had received funds to pay off its $3.52 billion sukuk.

Dubai World said in a statement: "Dubai World will continue to work with financial creditors to negotiate a standstill in an orderly way. As long as a standstill is successfully negotiated, Dubai World has assurances that the Government of Dubai, through the Dubai Financial Support Fund, will provide financial support to cover working capital and interest expenses to ensure the continuity of key projects.

Nasser Al Saidi, chief economist at DIFC:
"[The announcement makes a point to] confirm that the UAE is united. That's important because there have been issues raised in the markets over the past few weeks. This move confirms that UAE should be considered as one single entity.

Weathering the storm

"These measures have ...allowed the economy to weather the storm well.

Hamad Bu Amim, Director General, Dubai Chamber of Commerce and Industry:

"The UAE is one of the first countries in the world to recover from the global financial crisis thanks to the astute Government policies and its prompt crisis management decisions, he said.

"The provision of $10 billion (Dh36.7 billion) by the Government of Abu Dhabi and the UAE Central Bank to the Dubai Financial Support Fund constitutes a message of unity and strength.

Comments of Yusuffali MA, director of Abu Dhabi Chamber of Commerce and Industry:

"Timely move, big boost to the local and regional finance markets and all those who predicted doomsday for Dubai can rest in peace now. Though it might come as a surprise to many... I was always confident of the economical power of UAE as one united country."

Simon Cooper, CEO HSBC Middle East:

"The news that the UAE authorities are going to support Dubai World and its companies in their financial obligations will be welcomed by international financial markets."

Matthew Wakeman, managing director, cash and equity linked trading, EFG-Hermes:

"Today's announcement shows that the success of Dubai and its ability to be able to go back to global markets in the future to raise cash is of key strategic importance for the UAE as a whole," he said.

"What this gives is time for Dubai World to restructure the existing debt and gives investors confidence that the government appreciates the systemic shockwaves that a default would have caused here and overseas."

Philippe Dauba-Pantanacce, senior economist, Middle East, North Africa and Global Markets, at Standard Chartered:

"The announcement that the government of Dubai will satisfy a series of upcoming obligations on Dubai World including the Nakheel sukuk is a very welcome development for the emirate, the country, the region and even Emerging markets generally speaking.

Venu Rajamony, Consul General of India:
"It is a very welcome step. It shows the strength and unity of the United Arab Emirates as a country and it will dispel all fears and speculations with regard to the soundness of the UAE economy. This measure in particular the repayment in full of the Nakheel's Islamic sukuks will provide a big boost and assure investors that their future is secure in the UAE.