Dubai Sheikh “Not Worried” About Mounting Debt

The Ruler of Dubai, Sheikh Mohammed bin Rashid al-Maktoum, told reporters Tuesday that he is not concerned about his emirate being able to repay its $4.52 debt.

Reuters

“I assure you we are alright, the U.A.E. is alright, and we are not worried,” said the Sheikh, who is also the Vice President and Prime Minister of the United Arab Emirates.

Dubai owes $1 billion in Islamic bonds which need to be paid in November. The emirate also must pay the state-owned real-estate developer Nakheel $3.52 billion Islamic bond in December. In addition, Dubai owes $80 billion it borrowed from various companies to build itself up.

The world economic crisis slowed many of Dubai’s plans. Currently, those development plans include a tower set to be the world’s tallest, plus artificial islands.

“The strategy is nearly the same,” Sheikh Mohammed said. “The U.A.E. is strong, it is like a plane facing headwinds. Now the headwinds are slowing down, so the plane will reach its destination more quickly.”

Wednesday, the Sheikh inaugurated the Persian Gulf’s first subway line. That project cost $7.6 billi0n.