The debt crisis in Dubai will have a knock-on effect for healthcare services throughout the emirate, it has been claimed.
Biomed Middle East reports that while the announcement that Dubai World is seeking extensions on its debt payments has drawn attention to the shaky foundations of the city state’s property sector, problems have also been witnessed in the healthcare sector.
Among the major projects facing financial setbacks are Dubiotech and Dubai Healthcare City, both of which have suffered long delays and have impacted access to care for both Emiratis and expat health insurance customers.
Speaking to the Middle Eastern healthcare journal, John Sfakianakis, chief economist at Saudi-based Banque Saudi Fransi-Credit Agricole Group, said the crisis is affecting all sectors of the economy.
"Right now we’re still seeing the impact of this, and the impact will be that [every industry] is being negatively perceived," he added.
Although fears were raised last week that the global economy may be plunged into another crisis by the announcement, financial markets have reacted positively to the announcement that Dubai World is in talks with its creditors to discuss payment schedules.