IMF: Dubai debt revamp poses challenge for UAE

The global financial crisis and Dubai’s debt restructuring raise important challenges for the United Arab Emirates economy, but its prospects remain favourable, the International Monetary Fund (IMF) said yesterday. The crisis sent the world’s third largest oil exporter into a downturn last year, its first since 1993, while Dubai debt woes are seen weighing on the Gulf country’s recovery in 2010. The IMF said most of its executive directors agreed the UAE’s dollar peg provided a credible anchor and contributed to its macroeconomic stability, but stressed the importance of a “speedy and predictable” approach to Dubai World’s debt restructuring.