Dubai World debt deal likely to be finalised in two weeks

The Dubai World debt deal on the repayment schedule to creditor banks is expected to be finalised in a fortnight, Chairman of Dubai's Supreme Fiscal Committee Sheikh Ahmed bin Saeed Al Maktoum told CNN in an interview.

The proposals have been accepted by the committee, which is now in the process of refining them, he said. "I remain positive it will be received well," he added.

Answering a question on the interest rates offered, Sheikh Ahmed said it has "always been a generous proposal for everybody". He said Dubai has amply demonstrated that it always kept the interest of the creditors. "We expect them to appreciate what we've been doing," he said.

On the way forward, Sheikh Ahmed said Dubai would do best by focusing on its core businesses – tourism, re-export and the services sector. Real estate companies should study their future expectations more carefully, he added.

He said Dubai would grow five per cent this year as all of its core sectors are doing well. However, he said the real estate sector needs two to five years for a complete recovery although it could fall short of the historic highs.

On the much speculated figures of drop in real estate prices, Sheikh Ahmed said it was not uniform as in some areas prices dropped only by 20 per cent.

On the impressive show by the emirate's aviation sector that saw cargo movement growing 26 per cent and passenger traffic up 20 per cent, Sheikh Ahmed, who is also President of Dubai Civil Aviation Authority and Chairman of Emirates Group, said cargo movement would grow by 50 per cent this year.

Sheikh Ahmed said it was realistic to expect such growth since the environment was conducive for businesses to cash in on cheaper office space that makes Dubai a very attractive place for investors.

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