Sovereign risk concerns in relation to broader fiscal finances of Dubai and Abu Dhabi are overstated as the UAE remains one of the world's largest creditors, Nomura International said in a new study released yesterday.
It said the flush state of the UAE's finances at the federal level means that the risks of a default on sovereign debt are limited.
"After running a modest budget surplus in 2009, the country should see a return to a double-digit surplus this year on the back of rising oil prices and increased output," added the Nomura report.
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