Ratings agency Standard and Poor's (S&P) last month downgraded some of Dubai's biggest government-linked companies, citing a deteriorating economic outlook.
S&P also put four Dubai-based banks on review for downgrade and forecast that a contracting economy and weak property sector could weigh heavy on the financial sector. "The global economic downturn continues to depress some of Dubai's key economic sectors, including trade, tourism and commerce," the rating agency said in a statement. "Demand in the all-important real estate sector also continues to show clear signs of having abated, with indications that a sharp correction in the real estate market, and an associated contraction in development and construction, is currently under way."
The ratings agency said it expected Dubai's economy to contract between 2% and 4% this year.
