Dubai World Financial Crisis Continues
Investment company Dubai World‘s debt payments that were delayed by the Dubai government has sent jitters across world markets. Asian markets suffered heavy losses and sovereign-bond market debts is feared to make global financial aftershocks.
One of its managed companies Nakheel, which is known for its gigantic residential estate development projects such as the Palm Islands (the Palm Jumeirah, the Palm Jebel Ali and the Palm Deira), Dubai Waterfront, The World and The Universe Islands, will need to pay a 14.7 billion UAE dirham ($4 billion) worth of Islamic bonds. Dubai World may still pay it by December 14, though last resort plans are already underway, one of which is to liquidate assets.
The Central Bank of United Arab Emirates may step in and guarantee the $59 billion debt, according to a report by Zawya Dow Jones on Saturday.
Meanwhile, an unnamed senior official said that oil-rich neighbor and UAE capital Abu Dhabi would “pick and choose” how to assist Dubai World. “We will look at Dubai’s commitments and approach them on a case-by-case basis,” the official added in a phone interview with Reuters.