Dubai business leaders say issue overblown

Dubai: Several business officials and industry captains in Dubai said problems on the emirate’s debt repayment have been exaggerated and the impact of the Dubai World restructuring overblown across the global media and markets.

Riad Kamal, chief executive of Arabtec, said he had no doubt about Dubai’s commitment to settle its debt. "Dubai should be given time to restructure its debt. I'm not going to lose sleep over this issue," he said.

“I am very relaxed. Dubai has never defaulted and it will not default,” Khalaf Al Habtoor, chairman of Al Habtoor Group, told Reuters by phone. "I am confident the government will meet its commitments and help the companies."

An executive at Emirates NBD, one of the region's largest banks, said: “It's business as usual and there's nothing to worry about."

Tim Clarke, the president of Emirates airline, told London’s Sunday Telegraph in an interview that “Dubai will navigate itself out of this, as will we.” He said the carrier would not be affected.

Some bankers and investors also believe last week’s Dubai World restructuring announcement was blown out of proportion. "The crisis itself has been exaggerated. It is very much localised in one sector and one group. It has been escalated to a much bigger issue,” Suresh Kumar, chief executive of Emirates NBD capital said.

Ajman Bank said it would pursue its plan to open a Dubai branch in December. "Since the start of the global crisis, this is not the first time a postponement has been announced in a world economy like Dubai," Ajman Bank’s acting CEO Ali Alshaqoosh Al Mueen told reporters. "The decision will certainly have been taken after a thorough review of all resulting benefits and outcomes."

Some executives at international banks active in the region also voiced confidence in Dubai.

Michael Geoghegan, HSBC Group chief executive, said in a statement at the weekend he was "confident that the leadership of Dubai and the UAE will overcome any short-term issues they face, which appear to have been somewhat sensationalised, and continue to lay the foundations for sustainable growth."

Mounir Husseini, Deutsche Bank's chief country officer for the UAE and Qatar, told Reuters in an email statement: "It is clear to me that the leadership of Dubai, supported by Abu Dhabi, is committed to taking the right steps for the UAE."