UAE minister says Dubai World's debts not heavy 2009-12-21 21:36:50   Print

    ABU DHABI, Dec. 21 (Xinhua) -- The state-owned conglomerate Dubai World's debts are small and some companies have been saddled with debts much heavier than those of the group, United Arab Emirates (UAE) Economy Minister Sultan Al Mansouri said Monday.

    "The UAE economy is one body and inseparable," Al Mansouri was quoted by the official news agency WAM as saying on the sidelines of a UAE-Azerbaijan joint committee meeting.

    The minister said he was optimistic about the improvement in the regional and world economy next year, adding that the UAE economy will see a growth of 1.3 percent this year and 3.2 percent in 2010.

    Proactive measures taken by the country have substantially mitigated the impact of the global financial crisis, he said.

    Al Mansouri said the UAE's rapid development has created an attractive investment environment.

    The government of Dubai, a member of the oil-rich federation, announced on Nov. 25 that it would ask Dubai World's creditors to agree to a debt moratorium of at least six months as a first step towards restructuring.

    On Dec. 1, Dubai World confirmed that its debt restructuring process related to a total debt of 26 billion U.S. dollars, of which a 4.1-billion-dollar sukuk, or Islamic bond, owed by its property subsidiary Nakheel was due on Dec. 14.

    Nakheel, the real estate developer which built the famous Palm Jumeirah island near Dubai's coast, said it would pay back the sukuk within two weeks last Monday, hours after Abu Dhabi injected10 billion dollars in order to save Dubai World from immediate default.

Special Report:  Global Financial Crisis


Editor: Fang Yang
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