When it comes to the state of the economy in Dubai, matters should be put within their right context. There is no need for exaggeration or underestimation of the current situation. Dubai could not be more transparent and open about the challenges it is facing due to the global economic downturn as it has been.
The Government of Dubai has announced that it raised a further $5 billion (billion) in bonds which is part of the long-term $20 billion bond programme launched earlier this year. The $5 billion was subscribed in full by the National Bank of Abu Dhabi (NBAD) and Al Hilal Bank.
There is no doubt whatsoever that the manner in which the government is handling the matter is indicative of its strategy towards dealing with the issue. The announcement of the recent bond issuance was made in full transparency, with the involvement of two major Abu Dhabi banks as well as the UAE Central Bank's knowledge of it.
Yet the government's recent announcement should not be over-interpreted, over-analysed or over-read. Common sense and logic should prevail when examining the recent move. There is no secret, no hidden agenda, no closed doors dealings, no unannounced decisions or undisclosed agreements or trade offs. Assets are not being sold off partially or fully, and none of the major projects were given away. The maliciously insinuating rumours should be put to rest — once and for all.
The bond programme in fact could only be seen as something that is positive. It reflects Dubai's systematic approach towards orderly and tactful restructuring. It also indicates a trust in the emirate's ability to withstand the challenges.
Yet most important of all, it shows the success of the UAE as the recent step was taken cooperatively and jointly.