Subject category:
Economics, Politics and Business Environment
Published by:
Amity Research Centers
Length: 8 pages
Data source: Published sources
Abstract
In 2013, Dubai took a victorious leap at the global financial platform by winning the bid to host the Expo 2020.This had given an opportunity to UAE to cement its reputation and generate opportunities both for itself and its regional counterparts. The UAE government was committed to bring life to its vision, by connecting ideas and minds and creating a bright future through leveraging the competencies of the safe haven economy. However, at the time of winning the bid, the government was heavily indebted, as Government Related Entities (GREs) stood at $142 billion, ie, almost 102% of its GDP. Also, the debt levels of the Government and state-owned companies remained quite large ie, about $103 billion by the end of 2013. According to various estimates, the Dubai government required additional funding of about $43 billion in Expo related infrastructure projects. The Government decided to adopt Public-Private-Partnership (PPP) Model to encourage private sector participation in mega projects for infrastructural development. It remained to be seen if the government would successfully arrange additional spending without jeopardising the debt dynamics. And would these strategies ensure fiscal sustainability?
About
Abstract
In 2013, Dubai took a victorious leap at the global financial platform by winning the bid to host the Expo 2020.This had given an opportunity to UAE to cement its reputation and generate opportunities both for itself and its regional counterparts. The UAE government was committed to bring life to its vision, by connecting ideas and minds and creating a bright future through leveraging the competencies of the safe haven economy. However, at the time of winning the bid, the government was heavily indebted, as Government Related Entities (GREs) stood at $142 billion, ie, almost 102% of its GDP. Also, the debt levels of the Government and state-owned companies remained quite large ie, about $103 billion by the end of 2013. According to various estimates, the Dubai government required additional funding of about $43 billion in Expo related infrastructure projects. The Government decided to adopt Public-Private-Partnership (PPP) Model to encourage private sector participation in mega projects for infrastructural development. It remained to be seen if the government would successfully arrange additional spending without jeopardising the debt dynamics. And would these strategies ensure fiscal sustainability?