Azerbaijan, Baku, Dec. 3 / Trend U. Sadikhova, A. Badalova /
The support for Dubai rendered by UAE Federal Government must not be regarded as subjecting of the Emirate to the interests of Abu Dhabi, the Institute for Near East & Gulf Military Analysis (INEGMA) research and development department director Theodore Karasik said.
He said that the UAE federal government will provide Dubai with necessary support as before.
"If such a step is taken, it should be seen as a positive, not negative - as if Dubai becomes subordinate to the interests of Abu Dhabi," Karasik told Trend .
The government of Dubai announced about plans to restructure the emirate's company Dubai World last week. It has declared a technical default on its debt obligations.
Earlier, the request of the government of Dubai to the investors to postpone payments on the obligations of Dubai World caused panic on the global stock, commodity and currency markets for half a year.
Debts of investment state-owned Dubai World company amounted to $59 billion in August.
The government of Dubai said that the request to postpone payment of debt also refers to the construction company Nakheel, which is a subsidiary of Dubai World. The government of Dubai's total debt amounts to $80 billion.
Karasik said that the government of Dubai has made all right actions towards the consolidation and restructuring of various financial facilities.
He said that the global crisis continues to impact on Dubai, because it affects different industries and businesses. "The right of ownership is being changed," Karasik said.
Earlier, expert on Arab economy, senior fellow at the William Davidson Institute of Michigan State University Riad al Khouri told Trend , that Dubai now must change its strategy and become less expansive. Perhaps, it should take a more conservative policy.
He said that the crisis will continue for some time. But Dubai will be able to restore its image of a financial center. The current situation will be recreational shaking.
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