Dubai World restructuring to take months

Dubai’s finance chief insisted on Tuesday that a troubled state-backed conglomerate has sufficient assets to meet its obligations but said that it would take more than six months to work out a restructuring plan.

Abdul Rahman al-Saleh, the head of the department of finance, also said that Nakheel, a large-scale real estate developer at the centre of Dubai’s debt problems, had received Dh9bn ($2.5bn) in state funding. But Mr Saleh did not specify when the developer, which is in talks to reschedule $4bn in debt, had received the funds.

Stock market investors shrugged off Mr Saleh’s comments and sold off shares listed on the local Dubai financial market for the second day in succession on Tuesday. In morning trading the market index fell 6 per cent to hit a 21-week low.

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Headlines fresh from Dubai:

09:17 08Dec09 RTRS-DP WORLD RECOUPS MOST OF EARLY LOSSES AFTER DUBAI FINANCE CHIEF SAYS FIRM ABLE TO MEET OBLIGATIONS

09:28 08Dec09 RTRS-STOCKS NEWS MIDEAST-DP World shares recover on fin min statement

REUTERS: DUBAI FINANCE CHIEF SAYS DUBAI SUPPORT FUND HAS GIVEN NAKHEEL 9 BLN DIRHAMS TO MEET ITS OBLIGATION

Update: Scratch that. Newest headlines:

RTRS: DUBAI WORLD 9 BLN DIRHAM ($2.45BLN) INJECTION “NOT NEW MONEY” - DUBAI WORLD SOURCE

DUBAI WORLD 9 BLN DIRHAM INJECTION WAS MADE AS PART OF $!) BLN GOVT AID TO STATE ENTITIES LAUNCHED IN FEB - SOURCE