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Dubai economy continues to grow on core business

No government related entity (GRE) needs bailout and Dubai government has no immediate plan to issue bonds as the emirate's economy continues to recover on its core business, said Mohammed Ibrahim Al Shaibani, the chief executive officer of Investment Corporation of Dubai. Opulentus DUbaiGREs are managing their own businesses and meeting their own targets on time, so they don't need government bailout, Al Shaibani told reporters at the opening news conference of Forbes CEO meeting in Dubai on Sunday. Al Shaibani, who is also director-general of The Ruler's Court, Government of Dubai, and a member of the emirate's Supreme Fiscal Committee, said that the government has no immediate plan to issue bonds. Any issuance would be based on need or requirement, and not to move the market or any other purpose, he added. Dubai suffered a set back in its economy when real estate sector hit in the wake of the global financial crisis in 2008, but Al Shaibani said it has been recovered and only office segment will take 2-3 years to fully recover. Property is usually a cycle anywhere in the world, which takes on average 7-8 years or 10 years to recover. "We are in the middle of the cycle," he said. "We don't have any problem in residential, retail and hospitality. Office will take time because of over supply," he added. Dubai is much more cost effective to establish a business and people will take this advantage, he explained. Earlier this month, Al Shaibani said Dubai is seeing recovery in its real estate market. "We feel the momentum is there. Anybody who buys property in Dubai buys the package of Dubai, the whole lifestyle," he told Bloomberg at a property exhibition in Dubai. Responding a question he said Dubai is on track to repay a 10 billion loan from Abu Dhabi. Dubai had drawn on about 8.45 billion of the 10 billion Abu Dhabi facility due to mature in 2014, according to the Dubai government's bond prospectus dated June 2011, quoted by Zawya Dow Jones. The UAE central bank and the Abu Dhabi government provided 20 billion in loans to Dubai in late 2009 with a multi-billion-dollar debt restructuring at one of its conglomerates. "We are on track to pay back Abu Dhabi... there is a date and we will meet the deadline for sure," Al Shaibani said. Source: http://www.menafn.com/menafn/1093572078/Dubai-economy-continues-to-grow-on-core-business

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