x Abu Dhabi, UAEWednesday 26 July 2017

Media cast Dubai in better light following agreement

A UK paper says the euro zone could learn a lesson from the emirate.

World media reaction to Dubai World's deal with its main bankers was overwhelmingly positive. An editorial in the Financial Times even suggested that the European authorities should take lessons from the way Dubai handled negotiations with creditors over its debts, and apply them to the current crisis in the euro zone. "It would be nice if news of Dubai World again proved a harbinger of things to come - this time, of markets' return to order rather than a new explosion of panic ? Scary as the thought may be, the euro zone may have something to learn from Dubai about markets."

Reuters Breakingviews, the influential business commentary website, said: "Times are looking a lot brighter at Dubai World. The troubled holding firm has revised its plan, first outlined in March, to restructure its US$23.5 billion [Dh86.31bn] debt. "Dubai is not putting in any more cash, but is giving creditors more choice. Lenders representing 60 per cent of the bank debt have already indicated their support. That puts Dubai close to the threshold it needs to force through the deal."

The BBC's Middle East business correspondent wrote: "How do you pay back $24bn? That's been the big question here for the past six months. Across the city, it's been hotly debated, but few had an answer. Thursday's news could mean they have finally found it." fkane@thenational.ae