Dubai aiming to spend its way out of recession
True to form, Dubai is planning to spend its way out of the continuing economic crisis caused by the global recession, according to the FT.
Dubai’s service based economy has been hit particularly hard by the prevailing economic situation and ratings agencies are concerned that Dubai may face problems refinancing its debts in the current economic climate, so this government initiative to stimulate economic activity will be welcome news to struggling businesses.
Following the lead of Saudi Arabia, Nasser al-Shaikh, director general of the department of finance, revealed that the government of Dubai will increase public spending by twenty per cent in 2009, from Dh30bn to around Dh36bn ($8.2bn to $9.84bn).
Most of the spending will be on infrastructure, particularly transport, apparently so Dubai will be ready for a forthcoming economic boom.
Some of the money has already been recouped by taking the unusual step of selling naming rights for stations on the soon to open Dubai metro railway.
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