Hopes developers will use government cash to pay UK consultants and contractors
Dubai鈥檚 developers will be able to draw on the $10bn bail out fund from the UAE government 鈥渨ithin a week or two鈥�, a Dubai treasury official has said. The announcement will bring hope for contractors and consultants in the emirate waiting for late payments from clients.
A senior source at a major British contractor in Dubai said, 鈥渕ost contractors here are struggling to be paid for their certified debt, mainly because of liquidity problems, so the money from the UAE government can鈥檛 come through fast enough.鈥�
The cash injection, announced ten days ago, is part of a five-year deal under which the Dubai government has launched a five-year $20bn bond programme and the UAE federal government has subscribed to the first half of it through the UAE Central Bank.
Dubai鈥檚 property companies will be the main beneficiaries of the $10bn bailout.
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