Sheik Mohammed bin Rashid Al Maktoum
Dubai tries to calm panicky investors
Dubai’s leader tried to calm panicky investors Tuesday as regional markets tumbled for a second day on news that the city-state’s chief conglomerate needs to delay payments on its $60 billion debt for six months.
Dubai’s ruler, Sheik Mohammed bin Rashid Al Maktoum, tried to reassure investors in his first public statement about Dubai World’s debt crisis. “Our economy is strong and solid and consistent,” he told Al-Arabiya satellite television, adding markets were overreacting because of “a lack of understanding about what is happening in Dubai.” He did not elaborate. Source: AP
Dubai’s ruler accuses the media of exaggerating debt crisis
Dubai’s ruler turned on the media Tuesday blaming the press for international concerns over his sheikdom’s ability to deal with its debts after stock markets in the Gulf plummeted for a second day. “The exaggeration of the media won’t affect our perseverance,” said Sheik Mohammed bin Rashid Al Maktoum in an emailed statement, adding that “media did not seek the truth and confused matters without knowledge.”
Federal authorities in the United Arab Emirates ordered the removal of The Sunday Times from shelves in the country on Nov. 29 after the paper carried a double page spread graphic illustrating Sheik Mohammed sinking in a sea of debt.
Last month, Dubai’s Sheik Mohammed told reporters gathered at an investment conference in the city to “shut up” and stop criticizing the emirate and its crucial relationship with Abu Dhabi amid growing concerns over its debts.
Regional investment bank EFG-Hermes said Monday that Dubai and its government companies may have total debts of about $150 billion, exceeding the city-state’s gross domestic product. Source: WSJ
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