Dubai World debt not to impact UAE economy: Al Mansouri

Abu Dhabi: Minister of Economy Sultan Al Mansouri said on Monday the he did not expect Dubai World debt problems would affect the projected 3 per cent growth rate for the UAE in 2010.

"It does not really have a huge reflection on the whole economy of the UAE," said Al Mansouri on the sidelines of an economic meeting with Azerbaijani officials. "If you look at what is happening worldwide, and the debt [of some nations]...[it is] huge in many countries. The issue of Dubai World is smaller in terms of its effects on the economy of the UAE."

Al Mansouri added the federal government would deal with future Dubai debt issues on a case-by-case basis.

The minister's comments came as Dubai World officials held talks in Dubai with lenders aimed at restructuring $22 billion (Dh80.9 billion) of debt. Last week, the Dubai Government-owned company helped its property subsidiary Nakheel repay $4.1 billion (Dh15.1 billion) on a Sukuk, or Islamic bond, after receiving $10 billion from a bond sale to the Government of Abu Dhabi.