Dubai names new board for troubled Nakheel

DUBAI: Dubai on Tuesday named a new board of directors to lead its struggling real estate giant Nakheel, after announcing plans to separate the firm from its debt-laden parent-group Dubai World.

Ali Rashid Lootah has been named as the new chairman, from the Dubai ruler’s office said in a statement, replacing Sultan Ahmed bin Sulayem, who remains the chairman of Dubai World. The new board of directors does not include the company’s chief executive officer, Chris O’Donnell, but a Nakheel spokesperson told AFP that he retains his position as CEO.

Nakheel woes may prompt better bankruptcy laws

DUBAI: The trillion dollar Islamic finance industry is looking beyond the troubles of Dubai developer Nakheel at possible reforms that could help draw more interest from Western players.
Dubai World rocked the global markets in November when it asked for a delay in repaying $26 billion in debt. A $4.1 billion sukuk, or Islamic bond, from its unit Nakheel staved off default thanks to a bailout from Abu Dhabi.

But Nakheel put a negative spotlight on Islamic finance as global markets began to wonder if the Islamic structure of the deal was to blame.

Abu Dhabi’s financial lifeline to Dubai is loan

Friday, December 18, 2009
DUBAI: Abu Dhabi’s last-minute lifeline to debt-laden Dubai, which prevented a potential major default, was an interest-bearing commercial loan and not a handout, a government-owned daily said on Thursday.

“It’s in (the form of) bonds,” the Emirates Business newspaper reported, quoting a source close to the Dubai government.

Abu Dhabi vows to fight for rights in Citi dispute

Thursday, December 17, 2009
DUBAI, United Arab Emirates Abu Dhabi’s main sovereign wealth fund, which is alleging fraud over its $7.5 billion investment in Citigroup Inc, vowed Wednesday to fight for its “legal rights” as it seeks compensation or an exit from the deal.

Word of the dispute emerged late on Tuesday when Citi issued a brief statement saying it had been hit with an arbitration claim from the Abu Dhabi Investment Authority alleging “fraudulent misrepresentations” in connection with the two-year-old agreement.

Abu Dhabi’s financial favour to Dubai may carry price tag

Wednesday, December 16, 2009
DUBAI: Dubai has been let off the hook for now over its imminent debt thanks to a hefty lifeline from Abu Dhabi, but the price it may have to pay its deep-pocketed neighbour for the favour remains to be seen.

The city-state surprised the markets on Monday when it said it will pay $4.1 billion of maturing bonds issued by its troubled Nakheel giant property developer after it had requested a standstill on payments.

Dubai’s debt travails

Dubai is in trouble. The pearl of the Persian Gulf whose fame and fortune washed distant shores is suddenly losing its lustre. Dubai World, a major investment company in Dubai and the jewel in the city-state’s crown, has run up an astounding $60bn debt.
 
The conglomerate is unable to meet its scheduled debt repayments and has sought a suspension. So much for its boast that ‘the sun never sets on Dubai World’. Dubai World claims to be one of the largest holding companies in the world, with its investment portfolio spreading across 100 cities and encompassing industries and sectors ranging from ports management, property development, hospitality and tourism, free -zone operations and private equity investment.