25 November, 2009
FACTBOX-Dubai World faces restructuring, debt standstill
Nov 25 (Reuters) - Dubai World is one of the emirate's three flagship holding firms, along with Dubai Holding and Investment Corporation of Dubai, and is home to some of the most well-known government-linked entities within the Emirate.
On Wednesday the Dubai government said it will ask creditors of Dubai World for a standstill on debt worth billions of dollars as a first step towards its restructuring. [ID:nGEE5AO13A]
Foremost among them is the property firm Nakheel [NAKHD.UL], developer of the iconic palm shaped islands, with levels of indebtedness which have become critical to international investor perceptions of Dubai's financial health.
LEADERSHIP
* Sultan bin Sulayem -- Chairman
Bin Sulayem is regarded as a key member of Dubai's political leadership, and considered close to the ruler Sheikh Mohammed bin Rashid al Maktoum.
He is a member of the Executive Council - broadly equivalent to a cabinet minister.
Speculation has increased in recent days that bin Sulayem's position could come under pressure following his removal last week from the Investment Corporation of Dubai (ICD). Dubai World declined to comment.
RESTRUCTURING
Dubai World said in October its restructuring was nearly complete and would help save $800 million in operating costs over the next three years. [ID: nLF607695]
The company also said it had reduced its global workforce by 15 percent to around 70,000.
MAJOR HOLDINGS
* Nakheel Properties -- the world's largest privately held real estate company, with developments that span the residential, retail, commercial and leisure sectors. The company has a $3.5 billion sukuk, or Islamic bond, up for maturity on Dec. 14.
In October, Dubai World announced that the management of Nakheel's shopping malls, including the Ibn Batutta Mall and DragonMart in Dubai, were moving to a separate entity, Retailcorp World.
* Istithmar -- a financial investment company with a portfolio of over 50 companies within financial services, consumer, industrial and real estate sectors.
It bought U.S. luxury retailer Barneys New York for $942 million from Jones Apparel Group (JNY.N) in 2007. Earlier this month, Istithmaar sold two buildings in London to Great Portland Estates (GPE) (GPOR.L), according to its financial statements. [ID:nLC366732]
The company's equity investment exceeds $2.6 billion across markets ranging from North America to the Far East, according to the website.
* Limitless -- real estate developer with projects in the UAE, Malaysia, Vietnam, Saudi Arabia, Jordan and Russia. In April, the company announced it had cut seven percent of its workforce and delayed a key contract on its proposed $61 billion Arabian Canal project as a result of the global downturn. [ID:nL1694325]
* DP World DPW.DI -- listed on Nasdaq Dubai, and one of the largest port operators in the world. In October, DP World said it envisaged a difficult fourth quarter amid falling container volumes. [ID: nLR608588]
* Dubai Dry Docks -- involved in ship repair, conversion, new building and other marine-related activities.
* Tejari -- online B2B marketplace and e-commerce hub for businesses in the Gulf region.
* Economic Zones World (Jebel Ali Free Zone) -- provider of industrial and logistics infrastructure solutions including the development and operation of economic zones, technology, logistics and industrial parks.
* Dubai Multi Commodities Centre -- created to establish Dubai as a hub for commodities trading, and provide industry-specific market infrastructure for gold & precious metals, diamonds & coloured stones, energy and other commodities industries.
(Reporting by Rachna Uppal; Editing by Thomas Atkins and Andy Bruce) ((rachna.uppal@thomsonreuters.com; +971 4 391 8301; Reuters Messaging: rachna.uppal.reuters.com@reuters.net))
Source: http://www.reuters.com
FACTBOX-Dubai World faces restructuring, debt standstill Added: (25.11.2009)
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