Dubai prepares for next debt challenge

One year ago, Dubai World had declared amidst much trauma that it was going to restructure US$24.9 billion (Dh91.45bn) of liabilities. Today, the Emirates can look back with some satisfaction because they have been successful in nullifying their most serious financial threat.

However, it is not going to case away the probabilities of further difficulties that need to be overcome in other parts of the complex corporate infrastructure of Dubai Inc.

The situation has been summed up us progress been made but challenges still remain, by the US investment bank JP Morgan according to a recent study of the debt situation in Dubai.

Even with all the recent successes in the form of the almost-concluded restructuring of the Dubai World and the successful money-raising by the Dubai Government, there are still looming debt maturities which need to be dealt with at many quasi-sovereign enterprises.

The estimate of the bank is that almost $16.44bn worth of debts is still to be repaid by next year end.

Meanwhile, the successful conclusion of the negotiations with Dubai World's creditors in such a short time is a positive achievement for such complex a financial restructuring, and this has given emirate financial self-confidence.