Dubai’s efforts to stabilise its economy took several turns yesterday, with the emirate receiving new support from banks in neighbouring Abu Dhabi and then moving to take direct control of Dubai World and seek a delay in payments of the company’s debts.
The emirate said yesterday it had lined up US$5 billion (Dh18.35bn) in financing from the National Bank of Abu Dhabi and Al Hilal Bank, both of which are controlled by one of Abu Dhabi’s largest sovereign wealth funds, the Abu Dhabi Investment Council. The two banks agreed to buy $1bn in Dubai bonds immediately, and purchase the remaining debt over the next year.
Later in the day, Dubai announced that it had appointed a London-based accountant to take over the restructuring efforts at Dubai World, the Government-owned conglomerate, and would ask creditors of Dubai World and its property developer Nakheel to agree to delays in repayment of debts.
Well I guess the recession is still not over yet. I think more problem will start to surface
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