Dubai and the United Arab Emirates are to implement urgent reforms to address weaknesses in their financial systems, the head of Dubai's Supreme Fiscal Committee has said.
The "committee... is establishing a comprehensive programme to address vulnerabilities in our financial system," said Sheikh Ahmed bin Saeed al-Maktoum, who also heads Emirates Group.
"At a federal level, urgent steps are being taken to address the gaps in the UAE's legal and regulatory infrastructure," he said at the opening in Dubai of the two-day MENASA economic form.
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"A clear framework for the financial restructuring and reorganisation of companies, based on international principles, is being put in place" by the federal government, he said.
And "the (federal) government is set to issue a public debt law this year," after which it will "establish a debt management office to coordinate the raising of debt for government-related entities," he said.
"A similar debt management unit is planned to be set up in Dubai to centralise debt decision-making."
Dubai rocked global financial markets in late November when it said it might need to freeze debt payments by its largest conglomerate Dubai World, stoking fears of a state default over sovereign debt.
The conglomerate said on Thursday that it had "in principle" reached an agreement with most of its lenders, but the proposal still requires the approval of its remaining creditors.
"The proposal demonstrates Dubai's commitment to ensuring the success of government-related entities," Sheikh Ahmed said.
Dubai World's total debt, including liabilities, is about 60 billion dollars. Dubai's total debt is estimated at between 80 and 100 billion dollars, although some analysts say it could be as high as 170 billion.
Sheikh Ahmed also emphasised financial reforms enacted by countries in the Middle East, North Africa and South Asia (MENASA) had helped these areas weather the global financial crisis better than other parts of the world.
"The financial reforms undertaken by many countries in the region over the past decade have greatly supported its ability to be resilient and recover faster" from the financial crisis, he said.
He said many MENASA governments "responded with speed and intensity" to the financial crisis.
"However, we need to sustain our focus on ensuring the safety and efficiency of our financial systems," Sheikh Ahmed said.
