Monday, 13 December 2010

Dubai Ruler Replaces Dubai World Managers With Emirates Head

Dubai named Sheikh Ahmed bin Saeed Al Maktoum, head of Emirates airline, as chairman of Dubai World a year after the company rocked global markets with plans to freeze loan payments.

Sheikh Ahmed replaces Sultan Ahmed bin Sulayem, who led Dubai World, one of the emirate's three main state-owned holding companies, when property unit Nakheel built palm-shaped islands off the emirate's coast. The company built up $40 billion in debt as he turned DP World Ltd. into the world's fourth-biggest port operator and bought stakes in companies including the U.S. casino group MGM Mirage.

Dubai roiled emerging market stocks last year after it announced that it would to seek a delay in repayments on $24.9 billion of loans as the global credit crunch hurt Dubai's property and trading businesses. The emirate and its state-owned companies ran up total debts of $112 billion, according to Barclays Plc estimates, pushing it to restructure some of its groups. Dubai World's more than 70 creditor banks agreed in October to new debt terms that include repayments of $4.4 billion over five years and another $10 billion in eight years.

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