Dubai fire sale of assets dismissed as 'untrue'

Rumours are rife that Dubai has been in talks with the government of Abu Dhabi about it buying some of the emirate's assets, and he pointed to speculation over the future of both Emaar and Emirates airline, and the 'confusion' over how much Dubai owes and how it will finance that debt, stating: 'The government has not sold a thing and will not sell a thing.'

Alabbar said that Dubai's current sovereign debt is $10bn (Dhs37bn).

He told delegates at DIFC Week that the sovereign assets were being evaluated, but not including the metro, airports, bridges and healthcare they are worth $90bn (Dhs330bn).

Debt obligations for affiliate companies are $70bn (Dhs256bn), while assets for affiliates are $259bn (Dhs950bn). Dubai can handle its debt obligations, he said, adding: 'Please have no doubt about this fact.'

Competitors are now having to work together in the current difficult environment, said Alabbar, who said the government would step in to help affiliates if need be.

With rumours about the future of some key projects also rife, Alabbar said now was a time to 'rationalise expenditure and consolidate activities'.

'We will not spare any effort to secure our future. We recognise the challenges before us but this city, as a part of one strong nation, will continue to grow and thrive,' he said.

Asked about consolidation, he said it was important for Dubai's major companies to work together and set aside their competitiveness. 'We have to understand the realities on the ground and move accordingly. We have to collaborate and work together. There will be a time in the future when we will go back and compete again.'

See also:
Mohamed Alabbar talks exclusively to AME Info on Dubai's future.