Dubai secures 2009 funding, says DIFC chief economist

The Emirate of Dubai secured 2009 funding this week due to a US $20 billion bond issuance, of which the Central Bank of the UAE purchased the first half already, a leading UAE economist says.

Dr. Nasser Saidi, Chief Economist of the Dubai International Financial Center, explained in a statement to CNBC Arabiya that Dubai’s debt reached US $12 billion this year, and the timely bond issuance helps mitigate repercussions from the global economic crisis.

Dr. Saidi noted that the emirate’s increased spending and investment plans will lead to a shortfall in Dubai’s GDP of 3 to 3.5 percent.  The bond issuance will enable Dubai to meet its fiscal obligations and proceed with its development programs.