Positive outcome of the 99 per cent creditor agreement on Dubai World's restructuring, will contribute to the continuation of the emirate's ambitious development as a hub for capital and business.
Officials and experts said the agreement confirms the ability of Dubai's economy to adapt to changes and overcome the challenges, and prove that this economy is committed to the principles of transparency and clarity, said Al Bayan Arabic newspaper.
They added that this supports investor confidence in the emirate's promising future of the business and pointed out "the agreement is a strong message to every investor that Dubai is the destination of appropriate and optimal investments in the region".
The deal's outcome would help increase flows of investment and capital and external funds to Dubai.
Hani Al Hamli, Secretary General of the Dubai Economic Council, said the acceptance of the Dubai World deal by creditor banks, reflects the high capacity of Dubai's economy to adapt to the challenges of the global economic crisis and its ability to meet the obligations of the company.
He added that this also reflects the ability of the emirate's sustainability at a time that has witnessed the collapse of a lot of international companies. He stressed that adaptation and sustainability are the most important criteria of the vitality of any economy.
Al Hamli explained that many countries and major companies have been exposed to the need for emergency aid and rescue package. The world has witnessed how the financial problem faced by Dubai World was handled.
"The high confidence of the Government of Dubai to reach to an objective and rational solution acceptable to all parties led the emirate's ambitious plans as Dubai is the permanent capital and business at the regional and global levels," he said.
Al Hamli referred to the positive reactions of this agreement on the performance of global markets, stressing that this also affects the performance of the domestic market in the foreseeable future.
Al Hamli said that this achievement is the outcome of the strategic outlook of the Government of Dubai in maintaining the reputation of Dubai's economy and its companies in the global market.
He explained the strategy of the emirate in the structuring and debt management is to bring structural changes to ensure the maintenance of the vitality of sustainable growth.
He added that the strategy of restructuring involves a comprehensive review of the operational structure of firms and follow the alternative ways to achieve a high level of savings and reduce costs so as to enhance the financial positions of these companies.
Meanwhile Mohammed Musbah Al Nuaimi, Chairman of Mawarid Finance pointed out that the International Monetary Fund has warned rich countries including the Group of Seven industrialised nations of high debt levels that may cause disturbances in the market.
"In contrast, Dubai declared publicly that they managed to reach a formal agreement to restructure the debt of 99 per cent of Dubai World, which confirms beyond any doubt that it is able to overcome and restore the credibility."
He added that the approval of creditors on the restructuring emphasises renewal of confidence in Dubai on the obligation to pay its debts.
He added that Dubai has achieved many successes, For example, Dubai is among the top ten aluminum smelters in the world of the profits of more than Dh1 billion dirham in 2009, as well as the record Dubai airport traffic that makes it No15 among global airports. Passenger traffic increased by 7.19 per cent in the first quarter of 2010.
Meanwhile Hamad Buamim, Director General of Dubai Chamber of Commerce and Industry, confirmed that the agreement between Dubai World and its creditors is an important step towards fostering confidence the economy of the emirate.
It also shows the commitment of the government to provide all the components of successful investment in various economic sectors in Dubai, he added.
Meanwhile, UK lender Lloyds Banking Group expects conglomerate Dubai World's debt agreement to boost liquidity in the UAE, a senior executive said.
Richard Musty, Managing Director for Lloyds TSB Middle East, said a resolution on Dubai World was important for the region to demonstrate it can deal with its financial difficulties.
"Secondly, it will inject liquidity into the region through some of the businesses within it such as Nakheel and allow them to complete various projects, which has to be positive," Musty told Reuters in an interview on Tuesday.
Lloyds TSB sits on the informal coordinating committee that led restructuring talks between Dubai World and its creditors.