Dubai's vision is unchanged

Dubai: Dubai is back in business and the emirate's vision is unchanged, His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, told Bloomberg Television on Sunday.

Confirming its confidence in the economic recovery, the Dubai Government on Monday announced a dollar-denominated bond programme.

Speaking about the state of the Dubai and UAE economies, Shaikh Mohammad said, "We are back. Of course we are back. When I talk, I talk about Dubai, but we have to talk about the whole UAE as a country."

Following the successful restructuring of $24.9 billion (Dh91.58 billion) in Dubai World debts, sentiment has been positive, with banks and rating agencies expressing confidence in the recovery.

Shaikh Mohammad said that Dubai was ready to meet any challenges that might lie ahead. "All the projects that were there are going ahead, although some may be delayed for six months to a year. This is a challenge. Life would be boring if there's no challenge."

Bankers involved in Dubai World's restructuring process said the government had always been constructive.

"Having worked with the government closely over the past nine months we feel it is a good outcome," Simon Penney, chief executive officer of Royal Bank of Scotland, told Gulf News.

Recent developments in the corporate and financial services sectors have also been positive.

Nakheel, a leading property developer, said last week it would complete its debt restructuring by the end of the year and had resumed construction of its Al Furjan project.

Dubai Islamic Bank, meanwhile, announced on Sunday that it had acquired a majority stake in Tamweel, an Islamic mortgage provider, and that it would resume home financing within a few weeks.

Analysts expect the resumption of mortgage financing will boost the economy as a whole.

"This is very positive for Tamweel, but also a broader positive for the UAE financial sector that has had to deal with many uncertainties over the past year," said Khalid Howladar, senior credit officer at Moody's Middle East.