The UAE central bank move aims to re-start construction projects
The UAE central bank has thrown Dubai $10bn (£7bn) lifeline in the form of a bond programme. The move will help Dubai continue with its development plans and pay its debts.
Culture Village, one the projects on hold in Dubai
Under the deal the Dubai government has launched a five-year $20bn bond programme and the central bank has subscribed to the first half of it.
The money doesn’t come from the federal government of the UAE, which is based in Abu Dhabi. Rather it is from the central bank’s own inflows of capital and trade, although the UAE government is the largest stakeholder in the bank.
The money should prove a particular boost to state owned developers like Nakheel and Emaar. Half the UAE’s project are on hold, according to a report earlier this month. The research from ProLeads Global put the value of projects currently of ice at £400bn.
