Dubai's debt problems could undermine the GCC's recovery from the global financial crisis, panellists at a Dubai Chamber of Commerce and Industry event said yesterday.
The successful resolution of Dubai's debt burden would help improve investor sentiment in the region, said Hamad Buamim, the director general of the organisation.
"Dubai's debt is a risk not only to Dubai, but the whole region," Mr Buamim said. "Dealing with this issue will restore confidence among investors."
Dubai World is working to restructure US$26 billion (Dh95.49bn) of debt. The IMF estimates Dubai's total debt may stand at $109bn.
"People want to know how the debt situation will be dealt with," said Dr Henry Azzam, the chief executive of Deutsche Bank for the MENA region. "The more transparent the process is the better, going forward."
GCC companies needed to strive to raise levels of corporate governance, said Sultan Al Qassemi, the chairman of the UAE chapter of Young Arab Leaders.
"Dubai has set a standard," said Mr Al Qassemi. "For the whole region to be attractive, you need other states to come together to improve corporate governance and transparency and ensure full disclosure."
tarnold@thenational.ae
Zayed Sustainability Prize
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
TALE OF THE TAPE
Manny Pacquiao
Record: 59-6-2 (38 KOs)
Age: 38
Weight: 146lbs
Height: 166cm
Reach: 170cm
Jeff Horn
Record: 16-0-1 (11 KOs)
Age: 29
Weight: 146.2lbs
Height: 175cm
Reach: 173cm
UAE currency: the story behind the money in your pockets
THREE POSSIBLE REPLACEMENTS
Khalfan Mubarak
The Al Jazira playmaker has for some time been tipped for stardom within UAE football, with Quique Sanchez Flores, his former manager at Al Ahli, once labelling him a “genius”. He was only 17. Now 23, Mubarak has developed into a crafty supplier of chances, evidenced by his seven assists in six league matches this season. Still to display his class at international level, though.
Rayan Yaslam
The Al Ain attacking midfielder has become a regular starter for his club in the past 15 months. Yaslam, 23, is a tidy and intelligent player, technically proficient with an eye for opening up defences. Developed while alongside Abdulrahman in the Al Ain first-team and has progressed well since manager Zoran Mamic’s arrival. However, made his UAE debut only last December.
Ismail Matar
The Al Wahda forward is revered by teammates and a key contributor to the squad. At 35, his best days are behind him, but Matar is incredibly experienced and an example to his colleagues. His ability to cope with tournament football is a concern, though, despite Matar beginning the season well. Not a like-for-like replacement, although the system could be adjusted to suit.
