The Government of Dubai has set out the hard figures which show that the emirate has overcome the global economic crisis and is firmly in control of its financial situation.
The restructuring of the debt of Dubai World is complete and the conglomerate is now on a "sound financial footing" said Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of the Supreme Fiscal Committee and Chairman and Chief Executive of Emirates Airline and Group.
Dubai's sovereign debt is $30 billion, according to Mohammad Al Shaibani, Director-General of the Ruler's Court. This is a small amount relative to earlier speculation and can easily be managed by the emirate. The operating debts of government entities should not be too much of a concern as most are known to have strong operations which generate revenue, such as the Dubai Electricity and Water Authority.
Shaikh Ahmad said the government will now focus on the restructuring of the investment company, Dubai Holding, a process he expects to be easier than that of Dubai World.
By clearly announcing its plans and priorities, the government was displaying its commitment to transparency and good corporate governance that will boost investor confidence in the emirate.
The finances of Dubai are also being bolstered by strong government companies that contribute to its revenue and can be used to raise funds. In the coming weeks, the government will provide details of the privatisation of a few companies and the sale of stakes in state assets. Not only will this move further strengthen government finances, but the introduction of private capital, expertise and shareholder accountability is also likely to boost their performance and standards of governance.
By setting out its financial and economic plans, the government has bolstered the confidence of investors and residents in the future of Dubai.
