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Dubai outlines plan to stave off second crisis

DUBAI plans to set up a programme to address weaknesses in its financial system while the United Arab Emirates will open a debt management office to coordinate on issuance for state-linked companies, an official said yesterday.

Sheikh Ahmed bin Saeed al-Maktoum, chairman of Dubai’s Supreme Fiscal Committee, also said that Dubai’s debt restructuring proposal for state-owned conglomerate Dubai World signals the emirate’s commitment to state-linked firms.

“In order to be better prepared for the future, the Supreme Fiscal Committee, set up to oversee Dubai’s fiscal policies, is establishing a comprehensive program to address vulnerabilities in our financial system,” Sheikh Ahmed told an economic conference in Dubai.

Dubai World has reached a deal to restructure $23.5bn (£16.2bn) in debt with its core lenders, addressing the most immediate of a string of problems facing investors in Dubai, one of seven emirates in the UAE.

The deal, which includes no new money from the government and is broadly in line with proposals made in March, must be agreed by banks outside the negotiating panel.