DUBAI: Dubai business leaders yesterday voiced support for some of the emirate’s stronger state-linked companies, as the finance chief dismissed media coverage of the its debt woes as “blind panic”.

Dubai’s main stock market snapped out of a three-day downward spiral.

Meanwhile, the head of the Dubai Electricity and Water Authority (Dewa) said the utility provider has “unequivocal confirmation” of continued support from creditors after Moody’s Investors Service cut its credit rating to junk status earlier in the week.

“Our lenders are aware of the authority’s financial strength, past performance record and the stability of our revenue streams,” Dewa chief executive and managing director Saeed Mohammed Al Tayer said.

Moody’s Investors Service cut the ratings of Dubai Islamic Bank, Mashreqbank and Emirates NBD, saying uncertainty over debt restructuring was exacerbating the emirate’s economic woes.

On Wednesday, Emaar Properties dropped a planned merger with property companies owned by Dubai Holding.

Investors nonetheless saw the abandoned merger as good news for Emaar, driving the developer’s beaten-down shares nearly 15 per cent higher in the week’s last trading session yesterday.

Emaar’s rally helped drive the Dubai Financial Market index up 7pc following three days of heavy losses.

Dubai’s top finance official, Abdul Rahman Al Saleh, pressed ahead yesterday with government efforts to minimise the crisis.

The finance department director-general said international media coverage of Dubai’s debt problems was inaccurate and an “unnecessary blind panic” stemming from a misunderstanding of Dubai.

“Let me admit, in Dubai we are not good in publicising what (we) are doing as much as we are good in doing it,” he said.

Gulf Daily News