Dubai tries to put an end to speculation that it will restructure billions of dollars of debt next year, an Abu Dhabi-based newspaper said on Thursday. The speculation followed reports that state-owned companies battle a “tough global fund-raising environment,” said The National newspaper. Sheikh Ahmed Bin Saeed Al-Maktoum, the chairman of Emirates Airline and Dubai's Supreme Fiscal Committee, rejected the speculations. according to the newspaper. The newspaper said Dubai has endured a series of financial restructurings at some of its biggest state-connected firms over the past three years, shaking the foundations of a boom that propelled the emirate to prominence before the financial crisis. Dubai World, a government-owned conglomerate, last year got a $24.9- billion debt deal after creating the Dubai Financial Support Fund (DFSF) to help companies wade through the crisis. The DFSF was funded by $20 billion in loans and other facilities from the Abu Dhabi government and the Central Bank. But Moody's Investors Service, a major global ratings agency, said this week that three companies with large amounts of debt due next year may need further government support, The National said. These included a division of Dubai Holding, the Jebel Ali Free Zone Authority and Dubai International Financial Centre Investments, which together must repay, refinance or restructure around $3.8 billion of debt next year, it added. Total debt for Dubai government and government-linked companies is estimated at more than $100bn. Some debts may be refinanced next year “where necessary”, it quoted Sheikh Ahmed as saying, but there was a difference between these normal refinancing activities and forced restructurings. — SG Concern about Dubai's financial position has grown in recent months because of an extended period of duress in international debt markets. That has effectively closed off the tap for refinancings, especially for countries and companies considered as risky, raising the spectre of more need for government aid. It also comes as international banks predict a cooling economy for the UAE next year amid faltering global growth.
