DW takes debt challenge seriously

If Dubai World (DW) had a share price, it would probably have reacted positively to news that the debt-laden conglomerate was shedding thousands of jobs around the world as part of its near complete global restructuring.

Cutting the workforce on such a massive scale, especially in still suffering Dubai, is a clear sign that DW is taking its challenges seriously. The human cost of the jobs cuts, and the multiplier effect of the removal of thousands of jobs from the local economy, were doubtless outside the brief.

As an exercise in corporate restructuring, it all makes sense. Nakheel becomes almost exclusively a property developer, and Istithmar an investment and asset management business – both rather more in tune with the times than the “global vision” merchants of before.