Dubai World Debt Restructuring To Be ‘Fair,’ Sheikh Ahmed Says

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Dubai World will present a “fair” plan to restructure about $26 billion of debt as it needs the creditors and contractors for the long-term, the chairman of the Dubai Supreme Fiscal Committee said.

The restructuring proposal will be announced “very soon” and will be drawn up considering the long-term interests of the banks, contractors and Dubai, Sheikh Ahmed bin Saeed al-Maktoum, said in an interview in Dubai today. “At the end of the day we need everybody, they need us also; we have projects that will be started in the near future for the long-term.”

Dubai World, one of the emirate’s three main state-owned business groups, said Nov. 25 it would seek to delay repaying debt until at least May 30. The announcement sparked the biggest plunge in developing-nation stocks and the largest increase in emerging-market bond yields over U.S. Treasuries in four weeks, while the cost to protect against a default by Dubai doubled.