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Forward Movement for Dubai World

UAE : 15 October 2010

The next phase in development for the government-owned conglomerate looks to be arriving

As debt restructuring comes to a close for Dubai World, the development moves into the next step in operations.

Agreements have been reached with 99 per cent of the creditors, creating new terms for the $14.4 billion in loans.  This week saw the chief restructuring officer Aiden Birkett offer his resignation to the conglomerate.

Dubai’s government appointed the Supreme Committee to supervise the firms involved in Dubai World.  It was stated that a permanent management team would be put into place to guide the conglomerate through the development and implementation of its business plan.

Although there were no comments available from Birkett, the company stated that he had “successfully completed” the necessary work for Dubai World.

The group’s assets available for sale were set at a value of $11.8 billion to be generated over a period of eight years, according to recent analysis.

Chief investment officer for CAPM Investments out of Abu Dhabi, Mohammad Al Yasin noted that this move closes a one-year long chapter in the story of Dubai World.  Yasim, who was formerly a chief executive at Shuaa Securities, also stated that although this closes many loose ends, it is not likely to do anything for the market or pricing.

Restructuring was the first step taken and was entwined in this closing chapter, Yasin said before noting that Dubai World needs to rebuild confidence levels within the organization now.

He stated that the conglomerate should take advantage of the opportunities presented to it and work to maintain low cost levels.

As the recent boost in demand for Dubai bonds has shown, the levels of liquidity in the local market are growing.

Yasin stated that these conditions may see that the Dubai World restructuring plan outperform expectations and be successful.

Birkett’s stepping down is a major indicator that this stage is behind the company and that his job was completed successfully.  Fund manager as well as chief executive at Gulfmena Alternative Investments, Haissam Arabi stated that from this point on the restructuring of Dubai World is simply formalities.

Paul Holdsworth, Staff Writer, Gulf Jobs Market News
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