Dubai World asks for up to eight years to pay off debt

  














 Troubled group gets $9.5bn bailout from Dubai govt

DUBAI: Dubai World proposed on Thursday to repay its creditors in full by issuing two tranches of new debt maturing in five and eight years, after months of talks on restructuring sovereign liabilities that had rattled world markets.

The announcement came shortly after the government of Dubai committed to pump up to 9.5 billion dollars in further support for the troubled group, helping the emirate’s main stock market index to a 4.5 per cent rise by midday

DP World profits fell 46.3pc in 2009

DUBAI: Dubai’s port operator DP World announced on Wednesday a 46.3-per cent slide in 2009 profits compared with the previous year, saying however that the earnings were better than expected.

Net profits plunged to 333 million dollars last year compared with 621 million dollars posted the year before despite declining business in 2008, a company statement said. Revenues also dropped, from 3.28 billion dollars in 2008 to 2.82 billion dollars last year.

Dealmakers meet to sort $26bn Dubai World debt

DUBAI: Bankers gathered in Dubai on Wednesday to hammer out a $26 billion debt plan with state-owned Dubai World as a repayment deadline loomed, adding to pressure on the glitzy emirate to settle the conglomerate’s debt.

Core creditors representing 97 banks met to finalise months of talks on how Dubai World can restructure the debt, about a quarter of Dubai’s estimated total debt of $101 billion. Markets anticipated a deal favourable to lenders, with the cost of insuring Dubai sovereign debt falling and bond prices rising for Dubai World unit Nakheel, the property firm that built a giant island replica of the Earth.

Dubai to open world’s tallest building

Saturday, January 02, 2010
DUBAI: Once-bustling Dubai will open the world’s tallest skyscraper on Monday, boasting new limits in design and construction, hopeful of polishing an image tarnished by the debt woes afflicting the Gulf emirate.

Emaar, the giant property firm part-owned by the government and which developed the needle-shaped concrete, steel and glass structure, has declined to reveal Burj Dubai’s exact height. Apparently wanting to maintain the suspense, the company will say only that the tower exceeds 800 metres (2,640 feet), putting it far higher than Taiwan’s Taipei 101 tower (508 metres).

UAE stocks end volatile day down after Dubai bailout

Wednesday, December 16, 2009
DUBAI: Stock markets in the United Arab Emirates closed with losses on a volatile on Tuesday as investors took profits and digested the previous day’s news that Abu Dhabi would bail out debt-ridden Dubai.

The Dubai Financial Market index fell 1.49 per cent to finish at 1,843.27 points despite a bullish performance in early trading, when the DFM rose by several percentage points at one stage. On Monday the exchange had surged more than 10 per cent as Dubai’s government said it would pay $4.1 billion to cover maturing bonds issued by its Nakheel property giant after receiving the 10-billion-dollar handout.

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.

Abu Dhabi bails out Dubai with $10 billion

DUBAI: Abu Dhabi stepped in to help fellow United Arab Emirates member Dubai with a $10 billion injection, of which $4.1 billion was allocated to troubled state-owned conglomerate Dubai World to pay immediate obligations, Dubai said on Monday.
 
The move was the least expected of all options Dubai had on the table after requesting a standstill on $26 billion in Dubai World debt on Nov. 25, alarming markets and shaking the image of the emirate as a regional business hub.

Local investors injected billions into Dubai real estate

Tuesday, December 15, 2009
By Saad Hasan

KARACHI: Pakistanis have invested billions of dollars in Dubai real estate which saw a steep fall in its value in a few days back after a large emirate corporation sought rescheduling of debt to evade a possible default, industry people told The News.

It is hard to establish exactly how much is stuck in the once-booming construction industry since most of the investments were funneled through the illegal network of Hundi brokers, they say. “There are no data available on such investments because money was not transferred from here in the first place,” says Akeel Karim Dhedi, a stock market broker. “Rather the foreign exchange that was supposed to make its way here just stopped there at Dubai.”

Dubai tops global list for house price declines

DUBAI: Dubai property prices declined nearly 50 percent in the last year, according to a new report, making it the worst performing real estate market in the world.

The latest Knight Frank Global House Price Index for Q3 2009 surveyed house prices in 42 countries and Dubai was the worst performer on the list, with prices falling 47 percent year-on-year.

The index showed lower prices in 57 percent of the world's residential property markets, with Dubai prices falling the most, and Israel performing best, recording a 13.7 percent increase.

Dubai economy to rebound 2pc in 2010

Saturday, December 12, 2009
DUBAI: The economy of Dubai is expected to grow 2-3 per cent in 2010 after contracting about 2 per cent this year due to slowing real estate and construction sectors, a senior government official was quoted as saying on Friday.

Sami al-Qamzi, the head of the economic development department, told the state television the economy shrank 1.47 per cent in the first half of 2009, al-Ittihad and al-Khaleej newspapers reported.

Dubai stocks gain 7pc

Friday, December 11, 2009
DUBAI: Dubai’s stock market closed 7.0 per cent higher on Thursday, its biggest gain since the debt crisis exploded, and led by Emaar Properties after it called off a merger with state-owned entities.

The Dubai Financial Market index closed 107.4 points up at 1,640.76 points. Shares in Emaar, the Middle East’s largest property firm by market capitalisation, closed 14.84 per cent up, at 2.94 dirhams (80 US cents), after heavy trading and wide fluctuations. Like Emaar, several leading shares also surged close to the maximum daily gain of 15 per cent, including Dubai Islamic Bank, which rose by 14.53 per cent.

Dubai debt concerns spread beyond Dubai World

Thursday, December 10, 2009
DUBAI: Fears that Dubai’s debt problems are not limited to troubled state conglomerate Dubai World battered investor confidence in the world’s top oil-exporting region and sent Gulf shares tumbling on Wednesday.

Investors have been left in the dark since the Gulf business hub announced on Nov 25 that it sought to delay payment on Dubai World debt while it overhauls the sprawling state firm, which builds and operates everything from ports to luxury flats.

Nakheel makes $3.65bn H1 loss

Wednesday, December 09, 2009
DUBAI: Troubled Dubai property developer Nakheel made a first half loss of 13.4 billion dirhams ($3.65 billion) as revenues fell and it wrote down the value of land and property, according to a report published on Tuesday.Nakheel, whose parent company Dubai World has requested a six-month standstill on Nakheel’s $3.52 billion Islamic bond maturing next week, had made a profit of 2.65 billion dirhams in the year earlier period, Bloomberg News reported. Revenue fell 78 per cent to 1.97 billion dirhams, the news organisation reported, citing first half financial statements. Nakheel and Dubai World officials declined comment.

Emaar shares plunge as UAE markets take fresh tumble

Tuesday, December 08, 2009
DUBAI: Shares in Dubai’s giant property developer Emaar dropped the maximum-allowed 10 per cent on Monday as stocks in the United Arab Emirates took a fresh tumble over Dubai’s debt woes.

The Dubai exchange slumped 5.84 per cent and Abu Dhabi’s market dropped 1.68 per cent, after both on Sunday had recovered some of the heavy losses they sustained last week. Emaar, developer of the world’s tallest building, Burj Dubai, led the downward charge on the Dubai Financial Market.

Dubai debt crisis shows ‘fragile’ investor confidence

Tuesday, December 08, 2009
GENEVA: Investor confidence remains “fragile” despite the improving global economy, the Bank for International Settlements said on Monday, highlighting the nervous reaction of markets to Dubai’s debt woes.

“From early September to late November, a steady stream of mostly positive macroeconomic news reassured investors that the global economy had in fact turned around, but investor confidence remained fragile,” the BIS in its latest quarterly overview on financial markets,

Saudi investors shrug off Dubai debt crisis

RIYADH: Saudi stocks closed down one per cent on Saturday as investors shrugged off neighbouring Dubai’s debt crisis in the first trading day on the Riyadh market in nearly two weeks.

The Gulf’s largest equities market sank 2.3 per cent when trading opened for the first time after the Eid al-Adha holiday break, but recovered and was off only 1.06 per cent at the close.

The main TASI index fell to 6,288.27 from 6355.82 at its last closing on November 25, the day state-owned conglomerate Dubai World said it was asking to suspend payments on 59 billion dollars in debt.