In 2009, Dubai teetered on the brink of default. Currently, it is increasing its asset sales as more than US$30 bill worth of debt payables are coming due next year.Yesterday, the Dubai Financial Group agreed to sell its stake in consumer lender Dubai First. First Gulf Bank PJSC was offered with Dubai First at a price of US$163 million. Dubai Holding LLC planned a stake sell of its 35% stake in Tunisie Telecom. This was stated by the country's ministry of information and communication technologies last June 21.
Dubai sought to take advantage of a rebounding economy. This is to regain investor confidence after nearing default on US$25 billion debt roiled markets almost four years ago. The state owned companies including Dubai World and Dubai Holding borrowed billions with the intent to make the city a tourism and entertainment hub in the Middle East.
Montasser Khelifi, senior manager for global markets at Quantum Investment Bank said in an email that government entities are accelerating the pace of asset sales as upcoming debts are due next year. The state's due debt next year was calculated a total of around US$32 billion. In 2015, debt repayment was valued at US$9.6 billion according to Bank of America Merrill Lynch.
Abu Dhabi rescued Dubai from a crash with a US$20 billion lifeline. It probably won't lend aid to the country next year in its debt dues said Moody's Investor Service.
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