Dubai to boost spending

WSJ: Dubai and its government-controlled companies will boost spending by 11% this year from 2008, officials here said Saturday, as it seeks to stimulate the economy amid today's global financial crisis. The city-state's finance department estimates the new spending will result in Dubai's first ever fiscal deficit. Other Gulf governments, including Saudi Arabia and Oman, have announced recently that they too will risk deficits next year instead of cutting back on spending.

For Dubai, the move may also boost public confidence in the emirate's opaque finances. Analysts have raised questions about the large debt load Dubai has taken on in recent years to finance its explosive growth.