Thursday, December 17, 2009

Dubai economic crisis over, UAE united: Govt

The economic crisis in Dubai is over, the United Arab Emirates foreign minister said on Thursday. The $10 billion aid package this week from the wealthiest emirate Abu Dhabi to Dubai had proved the unity of the Emirates, Sheikh Abdullah Bin Zayed al-Nahayan said.

Speaking to Reuters during a visit to the Israeli-occupied West Bank, he said the United Arab Emirates government was "committed to dealing with the effects of the global crisis" for all UAE members.

"The economic crisis in Dubai is over," he said.

The lifeline to fellow-member Dubai "is proof that the UAE is united politically and economically", Sheikh Abdullad added. "It is also proof that UAE remains committed towards local government to deal with effects of the global economic crisis.

I believe the (global) crisis will be behind us once the United States recovers, and we believe the United States is recovering, which will reflect on other countries."

Dubai World rocked global markets on November 25 when it asked creditors for a standstill in debt mainly linked to its two property firms, Nakheel and Limitless World.

Abu Dhabi came to the rescue of Dubai on December 14, several days after state-owned conglomerate Dubai World asked creditors for a delay on payments of debts totalling some $26 billion.

The UAE safety-net, in the form of bonds to head off a bond default, cheered Gulf and global markets but raised questions about the undisclosed terms.

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