Dubai's market view on debt issue 'softening'
Friday, 11 December 2009
DUBAI, Dec 10 (Reuters): Dubai's finance chief once again moved to reassure markets Thursday saying the emirate was better at implementing change than publicising it and investors were softening their view on Dubai's debt woes.
A shock announcement by Dubai on November 25 that it sought a repayment freeze on $26 billion worth of debt at Dubai World, hammered global investor sentiment in the immediate aftermath of the news.
Fears that Dubai's debt problems are not limited to troubled state conglomerate Dubai World battered investor confidence in the world's top oil-exporting region and sent shares across the Gulf tumbling Wednesday.
Dubai's index, down 26 pct since November 25, was marginally higher at 0727 GMT (2:27 a.m. EST) Thursday in a highly volatile session.
"Of course, the reaction by the global markets was psychological, and came strongly. However, the reaction is now softening as investors became more informed about what happened." Abdul Rahman Al Saleh said in a speech.
A shock announcement by Dubai on November 25 that it sought a repayment freeze on $26 billion worth of debt at Dubai World, hammered global investor sentiment in the immediate aftermath of the news.
Fears that Dubai's debt problems are not limited to troubled state conglomerate Dubai World battered investor confidence in the world's top oil-exporting region and sent shares across the Gulf tumbling Wednesday.
Dubai's index, down 26 pct since November 25, was marginally higher at 0727 GMT (2:27 a.m. EST) Thursday in a highly volatile session.
"Of course, the reaction by the global markets was psychological, and came strongly. However, the reaction is now softening as investors became more informed about what happened." Abdul Rahman Al Saleh said in a speech.