Dubai to borrow more money if needed: economic advisor
Dubai is ready to take on more debt as needed according to its economic official on Wednesday.
“We continue to service the debt on time, as scheduled. We are ready to take on more debt, if needed be,” chief economic advisor Raed Safadi said.
His statement came after it was reported that Dubai met and negotiated with banks about issues of U.S. dollar-denominated bonds.
“We have proven time and time again that actually investments Dubai realizes are worthy investments and the rates of return more than compensate for covering the debt servicing burden and of course create growth and drives growth,” added Safadi.
In 2009, Dubai’s economy shrunk when a global crisis cost its real estate market to plunge and caused troubles to companies which resulted in owing billions of dollars as debt.
Still, Dubai struggles with its real estate market but not as terrible during the past decade.