Nakheel, Dubai’s leading property company and owner of the Palm development, offshore of the Gulf city, is in talks with Dubai World, its heavily indebted parent, over the repayment of a $3.5 billion (£2.1 billion) Islamic bond.
Dubai World, which also owns DP World, the world’s No 3 port operator, is guarantor of the Nakheel bond, which is being watched closely by Islamic investors as a bellwether for the shaky finances of the city-state and the health of Islamic finance, generally. Dubai World is the investment holding company of a clutch of emirate-related businesses that have huge debts. Dubai has to refinance $50 billion of maturing borrowings by 2013. Dubai World is believed to owe $60 billion.
In an effort to keep the State’s business ventures afloat, the Dubai Government this year raised an emergency $10 billion loan from the central bank of the United Arab Emirates.
I have heard soon the wealth of oil from Dubai is going to be vanished, So there are many alternative steps has been taken by the Government, We hope this step will also recover the economy back.
ReplyDeleteBurjul Arab was one kind of that type of activity and step taken by the Dubai ruler to keep the economy maintained, in case of oil deficiency.
ReplyDeleteI have seen this documentary regarding the Burjul Arab also, showing the basic purpose of this creation which was to stable the economy in case of lack of oil.
ReplyDeleteI love this 7-star Burj, One of the beautiful architect.
ReplyDeleteAs you already mentioned that oil is going to be vanished in the coming year from Dubai, What are the alternatives Federal Government is taking to compensate it.
ReplyDeleteBurjul Arab was one of that try to stable the economy.
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