3rdUPDATE:Dubai World Scales Dn Nakheel Ops Amid Debt Concerns

Government-owned Dubai World Thursday said it is scaling down operations at its troubled real-estate unit Nakheel, transferring assets and executives to its Istithmar World investment arm, amid ongoing concerns over the conglomerate's mounting debt pile.

"As part of an ongoing organizational operational restructuring process within the group, selected hotel and real-estate assets and the management teams related to these assets, primarily in international markets, have been transferred to Istithmar World," Dubai World said in an emailed statement.

In a separate statement Thursday, Nakheel said it won't participate in Cityscape Dubai next month, the emirate's biggest annual real-estate trade-show, and instead focus on delivering property that is near completion.

Related articles by Zemanta

• A Dubai Investment Arm Struggles With Debt Load (nytimes.com)