Hopes developers will use government cash to pay UK consultants and contractors
Dubai’s developers will be able to draw on the $10bn bail out fund from the UAE government “within a week or two”, a Dubai treasury official has said. The announcement will bring hope for contractors and consultants in the emirate waiting for late payments from clients.
A senior source at a major British contractor in Dubai said, “most contractors here are struggling to be paid for their certified debt, mainly because of liquidity problems, so the money from the UAE government can’t come through fast enough.”
The cash injection, announced ten days ago, is part of a five-year deal under which the Dubai government has launched a five-year $20bn bond programme and the UAE federal government has subscribed to the first half of it through the UAE Central Bank.
Dubai’s property companies will be the main beneficiaries of the $10bn bailout.
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