Wednesday 16 December 2009

Meeting of creditors is next test for Dubai World

Dubai World faces another test when it meets creditors next week to begin discussions on its other debts, totalling US$22 billion (Dh80.8bn).

After the relief of having met the deadline on Monday to repay the $3.52bn plus profit owed by Nakheel on its sukuk, UAE markets yesterday appeared to recognise that Dubai World still has a way to go to resolve its financial problems. The Dubai Financial Market Index fell 1.49 per cent and the Abu Dhabi Stock Exchange shed nearly 1 per cent.

Meanwhile, Moody’s Investors Service, the ratings agency, placed under review three UAE banks and the regional business of global banking giant HSBC for possible downgrade because of exposure in Dubai. Abu Dhabi Commercial Bank, Commercial Bank of Dubai, and Dubai Bank, may have their ratings cut.

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