Posted by Bob Brunskill
The Dubai government will provide financial backing for new restructuring plans by Dubai World and the real estate developer Nakheel, which are designed to offer a new growth platform for one of the emirate's showcase developments.
In a statement, Sheikh Ahmad Bin Saeed Al Maktoum, chairman of the government's Dubai Financial Support Fund, said that both Dubai World and Nakheel would be key contributors to the economic future of Dubai and the wider UAE.
He confirmed that under the new proposals, the government was offering to recapitalise Dubai World through a commitment of $9.5 billion in new funds.
This will include the remaining $5.7 billion funds from a loan previously made by the Abu Dhabi government as well as funds from internal Dubai government resources, Sheikh Al Maktoum added.
He said that following a comprehensive analysis of the circumstances facing each company, the plans to restructure the liabilities of Dubai World and Nakheel had been developed in the interests of all - including customers, contractors, employees and creditors.
Melanie Relton, the British Council's regional vocational education manager for the Middle East, recently claimed that the UAE is leading the way in entrepreneurial development in the Arab world by creating a culture of innovation and initiative.