Bank of America predicts that Dubai will experience a 5.5% recession in 2020; It faces debt maturities of about $ 10 billion this year, while revenues are expected to decline in the style of the 2009 crisis.

According to Reuters, Bank of America estimates that Dubai's fiscal deficit may widen to $ 4.4 billion, equivalent to 3.9 percent of GDP, and may rise To 5.3 percent interest payments on a loan from Emirates NBD, the largest bank in the emirate.

Bank of America said that financing the fiscal deficit or injecting liquidity into semi-government entities would be likely through loans from Emirates NBD in the first place. Dubai may also use $ 1.4 billion in deposits with the bank or issue bonds through a private placement.

The International Monetary Fund data estimated the debts of the Dubai government and related entities at about 110 percent of GDP, unchanged in nominal terms since the global financial crisis in 2009, But Bank of America said more companies will falter if the recession continues.

The bank added that continued losses in revenue may raise concerns about the solvency of companies if the recovery is weak.

The bank continued, referring to the IMF data, that Dubai and the semi-government entities face the repayment of debts by about ten billion dollars this year.

He said that he expects the government and banks to get support from oil-rich Abu Dhabi and the Emirates Central Bank if necessary, but debt recovery from companies affiliated with the Dubai government during the coming years At greater risk.

Sources have told Reuters this month that the governments of Abu Dhabi and Dubai are looking at ways to support Dubai's economy by linking assets in the two emirates. Dubai denied the content of the report.