Wednesday, May 29, 2013
1110 GMT [Zawya Dow Jones]--Dubai's debt problems aren't fully resolved despite growing optimism regarding the emirate's economy, says London-based Capital Economics. Warns that over the medium term "the scale of the liabilities accumulated in the boom years means that Dubai's debts are likely to cast a cloud on the horizon, leading to periodic bouts of market volatility." Expects "oil-rich Abu Dhabi [to] step in to provide emergency financing if needed." Adds that "in the meantime, concerns about further restructuring of loans made by the local banking sector to [Government Related Entities] mean that credit growth is likely to remain subdued." Sees Dubai's economy growing between 3% to 4% over the coming years, down from around 15% in the years prior to the 2008/09 crisis. (leila.hatoum@dowjones.com; Twitter: @ZDJnews)
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29-05-13 1113GMT
