Tuesday 11 May 2010

Dubai Leads Gulf Stocks Lower on Dubai Holding Debt Concern

Dubai’s benchmark index led declines among Gulf Arab markets on concern Dubai Holding LLC, a company owned by the emirate’s ruler, may have to restructure some of its $12 billion in debt and as European stocks fell.

Emirates NBD PJSC, the United Arab Emirates’ largest bank by assets, dropped for a second time this week. Emaar Properties PJSC, developer of the world’s tallest tower, retreated 1.8 percent. Union Properties PJSC was poised for the lowest close in more than a week. The DFM General Index lost 1.3 percent to 1,718.13 at 12:29 p.m. in Dubai. Oil pared yesterday’s gain, dropping 0.9 percent.

Dubai Holding, owned by Sheikh Mohammed Bin Rashid Al- Maktoum, and its units owe banks $12 billion, a person with knowledge of the matter said yesterday. Dubai International Capital LLC is talking to banks to refinance a $1.25 billion loan due in June and Dubai Holding Commercial Operations Group LLC, asked lenders to roll over a $555 million credit facility due in July, the person said.

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