Fitch Warns on $23 Billion of Dubai Inc. Debt Held by Banks
- Oversupply, weak consumer sentiment are impacting home prices
- Bank loan quality is deteriorating as property prices fall
The Burj Khalifa skyscraper, center, stands above other skyscrapers on the city skyline in Dubai, United Arab Emirates.
Photographer: Christopher Pike/BloombergThis article is for subscribers only.
A “significant portion” of $23 billion in loans made to Dubai government-related companies maturing at the end of 2021 may need to be restructured -- again, according to Fitch Ratings Ltd.
Banks in the United Arab Emirates -- still suffering the fallout of Dubai’s 2010 property crisis -- are at risk once again due to falling home prices and non-performing loans, the ratings agency said in a report on Tuesday.