Dahi: Don't mix up between government and companies debts

Dubai:  Lieutenant General Dahi Khalfan Tamim, Dubai Police Chief and Chairman of the Dubai Government's Budget Committee, urged the media not to confuse between the debts of local public companies and debts of the Dubai government, saying the latter's debts are almost non-existent.

"There are tens of Dubai-based national firms which are making huge successes worldwide," he said.

Lt. Gen. Dahi said real estate continues to be the top earning sector in the region.

"Only speculative real estate investors have been affected by the slowdown in the sector," he added.

"The UAE local banks possess enough assets, adequate liquidity and reserves to continue fuelling the development process."

Lt. Gen. Dahi said the 2010 budget did not conflict with either the existing or planned infrastructure projects, necessary for sustainable development.

"The department heads showed remarkable efficiency in setting financial and administrative strategies that will ensure Dubai's continuous excellence," he said.

Lt. Gen. Dahi pointed out that Dubai has more than a single landmark to be proud of.

"Usually, each country has an icon to be proud of. Dubai has many, such as Burj Dubai, Burj Al Arab as well as Dubai International Airport and the Emirates Airlines which are seen as major attractions for tourism."

Lt. Gen. Dahi, who also heads Dubai's Crisis management Team, said Dubai Government had no debt issue.

"Dubai has rather an issue of unfair competition by some circles which seek to undermine the successful emirates and to unseat it as a global centre for finance and business and a magnet for foreign investments that thrived and succeeded in Dubai.

"I noticed that Gulf and foreign media, as well as a large segment of general public, confuse between debts of Dubai government, which are almost non-existent, and the debts of local companies. This confusion should be corrected and the public should be made aware that to separate between the two types of debts."

Lt. Gen. Dahi said the real estate sector should be referred to as a "recovering sector" for the investors in the market for medium and long term gains.

"Those investors are not affected and their properties remain of a considerable value. They are still making profits from the rents which are very high, compared to other GCC countries."

He called for differentiating between property investors and property speculators, adding that the latter were severely affected.

"One has to be certain that the speculation market has its ups and downs. Therefore, speculators must know the risks involved," he said.

Later, Lt. Gen. Dahi told an Abu Dhabi TV programme that the whole matter of a company deciding to re-schedule debt payment was blown out of proportion.

"Six years ago, His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai, told CEOs of large companies that if they wanted to borrow, they should do that in their names, not Dubai Government's name."