Dubai Govt To Meet All Contractual Obligations

All its obligations based on contracts including its contractors will be met by the Government of Dubai but also, it has no clue that how companies that had received an aid from state would utilize those funds. This statement evolved as a result of a misleading report that got published on April 24, 2009, in MEED magazine.

The head of the Department of Finance, Dubai, Nasser Al Shaikh, mentioned last week that the names of the firms that have received support from the first bond proceeds will not be revealed by Dubai government, although the input beneficiaries were Dubai real estate companies in which some ownership stake is owned by the Dubai government.

"The government of Dubai will continue to meet all its contractual obligations, including to construction contractors, as per the terms agreed with all third parties," the government said. "It wishes to clarify that those companies that have received funding via the recently set up Financial Support Fund received such funds on strictly commercial terms, and that the utilization of such funds remains at the sole discretion of individual companies."

Dubai Government will not limit the number of construction firms licensed to operate in the emirate. London-based MEED reported in its latest issue that contractors who are to be paid money would not be paid for work they have carried out on Dubai government-backed schemes, as the emirate will only clear debts with contractors it wishes to work with in future.

"The Government of Dubai will continue to meet all its contractual obligations, including to construction contractors, as per the terms agreed with all third parties," it said in a statement.