Dubai Obtains Bank Financing Due to strong fundamentals
Strong economic fundamentals of Dubai made securing finance easy for the city-state from various lenders. Dubai index performed well at a time when uncertainties are prevailing in the global market especially in the European markets and US following the debt woes. Recent global financial crisis failed to derail emirates economic recovery and companies are easily securing finance.
Dubai Holding LLC, one of the three main state-owned holding companies has signed deal with lenders to extend a $1.16 billion loan to December 2016. Port & Free Zone World FZE, an intermediate holding company for port operator DP World Ltd. (DPW), is also said to have received assurance for $850 million from banks for restructuring its debt.
Gus Chehayeb, a Dubai-based associate director at investment bank Exotix Ltd said, "Banks are continuing to extend financing to Dubai Inc. because of its improving economy and debt profile. There is encouraging evidence with regards to its willingness to repay debt, sell assets, and stay current on its interest payments."
Rawad Hakme, the Dubai-based co-manager of fixed income at the United Arab Emirates unit of EFG-Hermes Holding SAE said that Investment Corp. of Dubai's move to pay back $4 billion of maturing debt would have far reaching impacts on the economy in a long run.
New Zealand News
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