Dubai government moves to stabilise economy
In response to growing fears about its economy, the notoriously secretive Government of Dubai has broken with tradition by disclosing details of its finances, merging and nationalising banks and financial groups and putting the brakes on its property market which many fear is on the brink of collapse.
The following figures were stated:
- Dubai’s borrowings: $10 billion
- Sovereign assets: $90 billion
- State-affiliated companies borrowings: $70 billion
- State-affiliated companies assets $280: billion
- Dubai’s GDP: $54 billion
- Ratio of debt to GDP: 148%
- Per capita debt: $40,000
Lingering fears about Dubai’s economy have caused the stock market to fall 60% this year, and the government of the UAE has had to step with financial backing in to provide reassurance to an increasingly jittery business community.
More details are available in this excellent article in The Times.
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