Dubai: Dubai Government on Thursday night said, its latest intervention in restructuring is aimed at ensuring "long term commercial success" of Dubai World - one of the UAE's largest holding companies that includes DP World - one of the world's largest port operator and Nakheel - arguably the largest property developer in the UAE.
“We want to ensure resources are deployed in the full knowledge that they are used to enhance the businesses of the Dubai World Group, build on the restructuring that has already been taking place and ensure long term commercial success," Shaikh Ahmad Bin Saeed Al Maktoum, chairman of Dubai Civil Aviation Authority, Chairman and Chief Executive of Emirates Airline and Group and Chairman of Dubai Government's Supreme Fiscal Committee said in a statement issued on Thursday.
Further information will be made available early next week, he said.
Dubai Government on Wednesday announced that it will restructure Dubai World, which has sought an extension for the immediate repayment of liabilities to the tune of $3.52 billion maturing on December 14, till May 30, 2010.
“Our intervention in Dubai World was carefully planned and reflects its specific financial position. The Government is spearheading the restructuring of this commercial operation in the full knowledge of how the markets would react," he said.
"Like most global cities, Dubai has experienced its share of economic and social challenges in this global downturn. No market is immune from economic issues. This is a sensible business decision."
Concerning the global market reaction in Europe and other parts of the world, which some analysts linked to the announcement to restructure Dubai World, Shaikh Ahmad said, "We understand the concerns of the market and the creditors in particular. However we have had to intervene because of the need to take decisive action to address its particular debt burden."
He pointed out that the unprecedented growth, in Dubai and across the UAE, over the past decade has helped lay the foundation for what is now a broad-based sustainable economy beyond just natural resources.
“The economic fundamentals, such as our highly developed infrastructure, strong transport and communications hub and regional financial centre will ensure Dubai remains an attractive regional market," he added.