Dubai budget boost to stimulate economy

DUBAI// Dubai's government plans to increase public expenditure by around 20 per cent in 2009 to stimulate the service-based economy, the Financial Times quoted a senior policymaker as saying on Saturday. Nasser al Shaikh, director-general of Dubai's finance department said it would increase from the Dh30 billion ($8.17bn) that was originally budgeted for public spending this year. "The role of government is to increase spending during challenging times and provide a stimulus to the economy," Mr Shaikh told the paper.

Dubai has cut its economic growth projection for 2009 to between 4 per cent to 6 per cent from 11 per cent, Mr Shaikh said in remarks published on Thursday. Mr Shaikh is a member of a Dubai committee set up to respond to a financial crisis that has shaken investor sentiment and heightened concerns about transparency in the emirate. Dubai's sovereign debt stands at $10bn while the debts of state-affiliated firms amount to $70bn, Mohamed Alabbar, a member of Dubai's ruling council and chairman of Emaar Properties said in November.

*Reuters