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Minister Predicts Dubai Holding Will Not Need Bail-Out

Dubai, UAE : 30 May 2010

Dubai investors were given the jitters at the end of last week when the investment arm of Dubai International Capital, Dubai Holding, asked for a delay in the payment of its first tranche of debt.

The request, for repayments to begin in September, instead of the agreed date of June, came only a few days after Dubai World finally reached agreement with its creditors over its massive $59 billion debt.  

Dubai Holding is a much smaller company than Dubai World and one that is wholly owned by Sheikh Mohammed bin Rasid al Maktoum – which made the request for payments to be pushed back more unexpected.

The company stated that the delays would allow time for agreement of a ‘longer term plan’ and would also ‘maximise the value’ of business for shareholders.

Sultan bin Saeed al-Mansoori, Minister of Finance for the UAE, predicted that Dubai Holding would be able to get through the crisis without the aid of a government bail-out, stating the Dubai expected to see 2.5 per cent growth over 2010.   A number of economists greeted this prediction with caution, including Banque Saudi Fransi chief economist in Riyadh, John Sfakianakis, who described it as ‘optimistic’ saying he expected only 2 per cent growth, ‘the bulk of’ which will come from Abu Dhabi, not Dubai.

Andrew Reid, Staff Writer, Gulf Jobs Market News
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