Sunday 1 May 2011

Dubai Support Fund to Offer Loans to Non-Government Entities - Businessweek

Dubai’s ruler amended a law to allow the emirate’s $20 billion fund to offer loans to non-government entities as the Persian Gulf business hub battles a debt crisis.

The Dubai Financial Support Fund "will grant loans and credit facilities to government and non-government entities," according to a statement posted on Sheikh Mohammed Bin Rashid Al-Maktoum’s website today. Any entity that "wishes to benefit from the fund should submit all necessary assurances to honor their obligations to the fund," it said.

Dubai set up the fund in July 2009 to help state-owned companies after the global financial crisis froze credit markets and led to a slump in the emirate’s property industry. The sheikhdom raised $10 billion by selling bonds to the United Arab Emirates’ central bank in February 2009. It also raised another $10 billion from bond sales to Abu Dhabi government and state- controlled banks to complete the fund, which was set up with advice from N.M. Rothschild & Sons Ltd.

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