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FINANCIAL NEWS
IMF: Debt-stricken Dubai raises challenges on UAE
18 Feb 2010
(MENAFN) The International Monetary Fund (IMF) said that Dubai’s massive debt along with the global financial crisis have raised much pressure on UAE’s economy, Reuters reported.
The IMF said that the UAE, the world’s third largest oil exporter, was sent into a downturn last year, its first since 1993, while Dubai debt woes are seen weighing on the country’s recovery in 2010.
UAE’s dollar peg has provided a credible anchor and contributed to the country’s macroeconomic stability, the IMF said, but stressed the importance of a speedy and predictable approach to Dubai World’s debt restructuring.
Dubai, the debt-stricken emirate, made the IMF slash its forecast for UAE’s gross domestic product (GDP) growth to 0.6 percent in 2010, despite the recovery in oil prices, from 2.4 percent in its October report.
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