Dubai’s financing of projects not affected on plunging oil prices
07 Dec 2014
(MENAFN) Dubai’s Department of Finance (DoF) said that it is confident that the emirate will be able to raise enough funds finance all its huge development projects over the next five years despite the plunge in oil prices, Gulf Business reported.
Dubai, which said it has aims for 4.5-5.0 percent annual gross domestic product (GDP) growth in coming years, has witnessed a strong recovery in its real estate market despite previously crashing in 2008 and is currently planning real estate and infrastructure projects worth billions of dollars as it prepares to host the World Expo exhibition in 2020.
The emirate, which unlike the other emirates in the country namely Abu Dhabi, has only a small oil industry, although it benefits from trade and tourism flows when economic growth in neighboring oil exporting states is strong.
“DoF has built a strong yield curve to raise both long-term and short-term funds at attractive rates. The finance department does not believe the state of the oil market is directly relevant to Dubai’s long-term plans,” DoF General Director was quoted as saying.