Dubai’s main investment fund seeks debt payment delay

 

Dubai’s main investment fund seeks debt payment delay

Dubai skyline

Dubai World has fuelled the emirate’s rapid economic growth of recent years

The government-owned investment company behind Dubai’s rapid development drive has asked its creditors for a six-month delay on repaying its debts.

Dubai World, which has total debts of $59bn (£35bn), is asking creditors if it can postpone its forthcoming payments until May next year.

Dubai World has also appointed global accountancy group Deloitte to help with its financial restructuring.

The company has been hit hard by the global credit crunch and recession.

The malaise has also affected Dubai as a whole, where following six years of rapid growth, the economy has slumped since the second half of 2008.

This has led to Dubai property prices falling sharply.

‘Shocking’

The Dubai government said in a statement that the request to delay debt repayments also applied to property developer Nakheel, a Dubai World subsidiary.

"It’s shocking because for the past few months the news coming out has given investors comfort that Dubai would most probably be able to meet its debt obligations," said analyst Shakeel Sarwar, of SICO Investment Bank.

Dubai is one of the seven self-governing emirates or states that make up the United Arab Emirates.

Analysts say the Dubai government has paid the price for a flamboyant economic model centred on foreign capital and giant construction projects.

Some have speculated it is likely to turn to the more economically conservative Abu Dhabi emirate to bail it out.

Global credit rating agency Standard & Poor’s, which rules on a company’s or government’s ability to repay its debts, said the announcement "may be considered a [debt] default".

As a result, it said it was downgrading its ratings on several Dubai government-related financial entities.

The Dubai World announcement was made on the eve of the Eid al-Adha Muslim festival, which will see many government agencies and companies close in Dubai until 6 December.

 

GLOBAL RECESSION

London commuters Taking the pulse
The BBC looks at how people are changing their behaviour in the recession

CONSUMER BEHAVIOUR

Global recession to a tango beat

If you bury me, make sure it’s cheap

Property auctions take hold in Dubai

Party continues despite recession

Spanish parents cancel summer camps

Singapore’s shoppers change habits

Thrifty Indians dent economy

ENERGY

One town’s bid to cut energy costs

Bleak outlook for Japan’s fishermen

India’s power dilemma

Singapore cabbies’ hopes

MIGRATION

Mexicans in US face cashback crisis

Migrants change track to beat recession

HOUSING

Sudan defies property slump

The slum solution to housing crisis

New wave of foreclosures hits US

FOOD

Haggling to make ends meet

Thailand’s misguided rice policy

Serbia’s past helps present

Cuts benefit Brussels shoppers

RELATED INTERNET LINKS

http://www.dubaiworld.ae/en/index.html

BBC News – Dubai’s main investment fund seeks debt payment delay

 

Technorati Tags: ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Windows Live Tags: Dubai,investment,debt,payment,World,growth,government,development,debts,payments,Deloitte,recession,malaise,statement,Nakheel,news,analyst,Shakeel,Sarwar,SICO,Bank,self,Arab,Emirates,capital,construction,Some,Dhabi,bail,Global,agency,Standard,Poor,rules,announcement,result,Adha,Muslim,festival,December,CONSUMER,BEHAVIOUR,tango,Spanish,Indians,ENERGY,Bleak,outlook,Japan,India,dilemma,MIGRATION,Mexicans,crisis,Sudan,solution,FOOD,ends,Thailand,policy,Serbia,Brussels,INTERNET,LINKS,index,investors,obligations,Analysts,agencies,auctions,shoppers,emirate,creditors

WordPress Tags: Dubai,investment,debt,payment,World,growth,government,development,debts,payments,Deloitte,recession,malaise,statement,Nakheel,news,analyst,Shakeel,Sarwar,SICO,Bank,self,Arab,Emirates,capital,construction,Some,Dhabi,bail,Global,agency,Standard,Poor,rules,announcement,result,Adha,Muslim,festival,December,CONSUMER,BEHAVIOUR,tango,Spanish,Indians,ENERGY,Bleak,outlook,Japan,India,dilemma,MIGRATION,Mexicans,crisis,Sudan,solution,FOOD,ends,Thailand,policy,Serbia,Brussels,INTERNET,LINKS,index,investors,obligations,Analysts,agencies,auctions,shoppers,emirate,creditors

Blogger Labels: Dubai,investment,debt,payment,World,growth,government,development,debts,payments,Deloitte,recession,malaise,statement,Nakheel,news,analyst,Shakeel,Sarwar,SICO,Bank,self,Arab,Emirates,capital,construction,Some,Dhabi,bail,Global,agency,Standard,Poor,rules,announcement,result,Adha,Muslim,festival,December,CONSUMER,BEHAVIOUR,tango,Spanish,Indians,ENERGY,Bleak,outlook,Japan,India,dilemma,MIGRATION,Mexicans,crisis,Sudan,solution,FOOD,ends,Thailand,policy,Serbia,Brussels,INTERNET,LINKS,index,investors,obligations,Analysts,agencies,auctions,shoppers,emirate,creditors

Advertisements
This entry was posted in Business. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s