News

       NEW DELHI, NOV 29: The Dubai govt said it fully expected the fall-out from its massive debt problem and promised to pump in all necessary resources to ensure longterm success of Dubai World.

        “The govt is spearheading the restructuring of this commercial operation in the full knowledge of how the markets would react,” Dubai Government’s Supreme Fiscal Committee Chairman Shaikh Ahmad Bin Saeed Al Maktoum said in a statement. He said the government’s intervention in Dubai World was carefully planned and “reflects its specific financial position.

           “We want to ensure resources are deployed in the full knowledge that they are used to enhance the businesses of the Dubai World Group, build on the restructuring that has already been taking place and ensure long term commercial success, ” Shaikh Ahmad said.

            Dubai World, an investment company that manages and superviese a portfolio of businesses and projects for the Dubai Govt said it would ask creditors for a “standstill” on paying back its $60 billion debt until at least May. 2010.

         Markets across the world went into a tailspin after the report.

        Shaikh Ahmad said, “We understand the concerns of the market and the creditors in particular.

          However, we have had to intervence because of the need to take decisive action to address its particular debt burden.”

          The real estate arm of Dubai World — Nakheel, whose projects inclue the palm-shaped island in the Gulf, shoulders the bulk of the said debt.

           Shaikh Ahmad pointed out that the unprecedented the UAE over the past decade has helped lay the founation for what is now a broad-based sustainable economy beyond just natural resources.

            “The economic fundamentals, such as our highly developed infrastructure, strong transport  and communications hub and regional financial  centre will ensure Dubai remains an attractive regional market,” the minister added, He said further information would be made available early this week.