It is understood that Dubai’s government may also repay the outstanding 2010 and 2011 sukuk, or Islamic bonds, issued by Nakheel, and consider providing further funds to Dubai World.
Thursday, 17 December 2009
Dubai rescue ‘will not set precedent’
Abu Dhabi’s bid to save Dubai from a bond default at one of its flagship companies has raised the spectre of moral hazard as investors speculate whether the oil-rich capital of the United Arab Emirates will come to the rescue again.
Officials insisted that Abu Dhabi’s last-minute reprieve of Dubai World should not be seen as a precedent for other struggling companies owned by the emirate, popularly known as “Dubai Inc”. The bail-out of $10bn (€6.9bn, £6.1bn) allowed Nakheel, the real estate wing of Dubai World, to repay a $4.1bn bond that matured on Monday.
It is understood that Dubai’s government may also repay the outstanding 2010 and 2011 sukuk, or Islamic bonds, issued by Nakheel, and consider providing further funds to Dubai World.
It is understood that Dubai’s government may also repay the outstanding 2010 and 2011 sukuk, or Islamic bonds, issued by Nakheel, and consider providing further funds to Dubai World.
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