The removal of Sultan bin Sulayem late on Sunday as chairman of Dubai World draws down the curtain on the era of debt-fuelled, real estate speculation that plunged the emirate into a recession from which it is now only just emerging.
It was only a year ago on Tuesday that Dubai warded off the threat of default through a $10bn bail-out loan from neighbouring Abu Dhabi, kicking off a restructuring process that ended with September’s $25bn restructuring agreement with creditors.
Given the size of the debt hole dug by the sprawling state-owned conglomerate, local observers had questioned how long Mr bin Sulayem could continue to remain at the helm of Dubai World’s 1,300 legal entities, even if it was widely acknowledged that he lost his executive powers at least a year ago.
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