Dubai: Dubai will not sell any of its assets to bail out Dubai World, a top Dubai Government official said, adding that the group will be able to overcome the situation through restructuring its debts and by selling its own assets.
Abdul Rahman Al Saleh, Director-General of Dubai's Department of Finance, told Al Jazeera television channel that "part of the financing of Dubai World will be through asset sales and these are the company's assets, not the government's assets.
"The main goal of the restructuring of Dubai World is to ensure the continuation of its operation as a viable commercial entity. Liquidity or availability of cash — it's not the issue. The question is the future of the company. It is in the interests of the company to inject liquidity or restructure it to make sure it remains sustainable in the long term."
Al Saleh said Dubai World's and Nakheel's problems originated from short-term lending on long-term projects.
"It doesn't work, especially in a volatile market situation. Most of Dubai World's and Nakheel's projects are of strategic importance and long-term. You can't develop them through short-term borrowing," he said.
Al Saleh, whose rank is equivalent to that of fin-ance minister at the state level, said the Dubai Financial Support Fund, which was set up in July this year, could extend support to Dubai World if needed.
However, he reiterated the government's stand on state guarantees for Dubai World's debts.
"When the company was established, if you go through the legal documents, there is no clause on the government's guarantee," he said.
"In fact, the clauses specify that the government will not guarantee the company's liabilities. It is assumed that the investors have read these clauses. The investors should have known this from the very beginning."
