Two senior Dubai government officials close to the restructuring of the emirate’s debts are meeting investors in the UK and US in a bid to restore confidence in Dubai’s ability to service its debts.
Sheikh Ahmed bin Saeed al-Maktoum, chairman of the Supreme Fiscal Committee and chairman of Emirates, and Mohammed al-Shaibani, deputy chairman of the committee and chief executive officer of Investment Corporation of Dubai, are currently in the UK, and will also visit New York and Washington DC in the US.
The Supreme Fiscal Committee is the body set up by the Dubai government to distribute the $21bn it has received from Abu Dhabi to provide financial assistance to its struggling state-backed firms.
Bankers say the meetings are intended to try and reassure international investors about the situation in Dubai. On 14 December, Abu Dhabi provided $10bn to the Supreme Fiscal Committee to help Dubai World pay off some of its debts.
The $21bn provided to Dubai so far is broken down between a $10bn bond from the Central Bank of the UAE, a $10bn bond from the government of Abu Dhabi, and a $5bn bond from National Bank of Abu Dhabi and Al-Hilal Bank, of which only $1bn has so far been provided.
The bonds have a five-year tenor and pay a flat rate of 4 per cent.