Sales of Dubai’s holdings are gaining momentum a year after the emirate’s corporate flagship shook world markets with plans to freeze payments on $24.9 billion in loans.
DP World Ltd., the port operator, agreed yesterday to sell 75 percent of its Australian unit, raising $1.5 billion. Borse Dubai Ltd., which controls Dubai’s two stock exchanges, raised $672 million Dec. 16 by selling about half its stake in Nasdaq OMX Group Inc., owner of the second-largest U.S. equity exchange. Both companies said they will use the proceeds to pay down debt.
Dubai and its state-controlled companies have until now been able to renegotiate with creditors. Some $20 billion in debt and interest is due next year, according to Egyptian investment bank EFG Hermes Holding SAE, raising the question whether Dubai will be forced to sell overseas assets such as luxury retailer Barneys New York Inc., U.S. hotel and casino group MGM Mirageand Canadian entertainment company Cirque du Soleil Inc., all amassed during the boom years.
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