Dubai sovereign risk overstated

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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