December 07, 2009

Dubai remains a regional hub for finance and tourism but must build up those sectors to replace the construction industry, as the emirate's economic growth grinds to a halt amid the global economic crisis, analysts said.Fears have mushroomed about the viability of the Gulf city state's economy after revelations that its main state-run company, Dubai World, is struggling to meet debt repayment deadlines, spurring panic over a possible financial collapse.

"Of course, this is not the bankruptcy of Dubai," said Marwan Barakat, chief economist at Lebanon's Bank Audi. "There is no other city in the region that has the same assets," he said, referring to Dubai's infrastructure and to its success in becoming a regional centre for finance and tourism.Jim Krane, the author of a book on Dubai entitled City of Gold, also dismissed claims that Dubai is collapsing.