Things have been going Dubai’s way of late. The emirate may still have a debt burden of $110bn but its state-related entities have managed to sign restructuring after refinancing deal as the city’s economy recovers, riding its status as a financial haven from the Arab spring.
But not everything is going Dubai’s way. It has emerged that three creditors last month pulled out of two-year restructuring talks over $6bn owed by the troubled Dubai Group, the investment arm of a conglomerate owned by the emirate’s ruler.
Dubai Group, which owes $10bn when inter-company loans are included, was one of several state-linked investment arms that overplayed their hands during the boom on borrowed money.
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