Abu Dhabi: The United Arab Emirates (UAE) will not change economic forecasts for 2010 as a result of Dubai's debt crisis, which will not have a "huge reflection" on the Gulf Arab state, the economy minister said on Monday.
Dubai sent shockwaves through global markets on November 25 when it requested a standstill on $26 billion of debts linked to Dubai World and its two property units -- Nakheel and Limitless. The emirate's total debt has been estimated at $100 billion.
Asked whether the UAE would need to lower its forecasts for next year, Sultan al-Mansouri said: "I don't think so because of the size of the issue."
"If you look at it, it doesn't really have a huge reflection on the whole economy of the UAE," he told reporters on the sidelines of a conference.
"If you look at what's happening worldwide and the debts they have as nations ... the issue of Dubai World is smaller in terms of its effect on an economy like the UAE.”
Debt-ridden conglomerate Dubai World is expected on Monday to ask key creditors for more time to pay off its loans.
Saddled with a $22 billion debt pile and in need of restructuring, the Gulf Arab emirate's flagship company is expected to formalise a request for a payment standstill at a meeting with some 90 creditors at Dubai's World Trade Centre complex.
Bureau Report
First Published: Monday, December 21, 2009, 13:01