Dubai has weathered the worst of the financial crisis and its upcoming $10 billion bond should interest private investors, Dubai International Financial Centre governor and UAE central bank deputy chairman said on Tuesday. Omar bin Sulaiman, speaking at a banking conference, also said the emirate, which has been hit by a property slump and the end of a six-year oil boom, was resilient.
"After successfully weathering the global financial crisis ... we are now in a position to declare with a great deal of confidence that the region has successfully passed through the worst of the crisis without experiencing any systematic risks." Bin Sulaiman is also part of Dubai's five-man Supreme Fiscal Committee, which has overall responsibility for overseeing the emirate's fiscal policies as well as a support fund set up to manage proceeds from a $20 billion sovereign bond programme.
The bond programme, launched in February, is meant to help state-linked firms. The first $10 billion tranche was sold to the central bank of the United Arab Emirates, a seven-member federation that includes regional trade tourism hub Dubai and key oil exporter Abu Dhabi.
"The private sector should be interested. It's a good opportunity for everybody," Bin Sulaiman said, when asked about the next $10 billion tranche. He declined to give more details. Dubai has not said when the second tranche will be issued but a ruling council member said on Friday that it could be as soon as this month.
Investors are keen to see how Dubai is able to tap markets as its real estate sector slumps under the weight of the financial crisis. The emirate and its state-linked firms have outstanding debt of about $80 billion, much of it incurred during a drive that saw Dubai expand activities in logistics, financial services, property and luxury retail and tourism.
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