Skip to content

Emergency committee considers further bail outs in Dubai

The crisis committee formed to tackle the fallout from the global economic downturn is considering moves to give financial support to the struggling sectors.

Omar Bin Sulaiman, a committee member who is also deputy chairman of the United Arab Emirates Central Bank, said discussion were active but he refused to reveal details. 'You have already seen some help. There will be some more,' he said.

Dubai's real estate sector is facing a sharp price correction and hundreds of billions of dollars of construction projects have been cancelled in the United Arab Emirates as a result of the economic slowdown.

The UAE finance ministry and central bank have together launched $32.67 billion of funding facilities to help banks cope with the crisis and the government is looking at ways to help troubled Dubai mortgage financers Amlak Finance and Tamweel, including a possible merger.

Dubai has seen its first real estate company go out of business and even the master developers are struggling. Developers are restructuring their businesses, consolidating operations and announcing thousands of job cuts to help them contend with the economic slowdown.

Master developer Nakheel announced yesterday that it has merged three business units as part of ongoing restructuring efforts at the company amid falling real estate values and a stalled credit market.

The builder of artificial islands off Dubai's coast and the world's largest themed mall said that it has merged Palm Deira, Mina Rashid and The World businesses into Nakheel Northern Coastal Projects, in addition to the merger of Nakheel Asset Management and the company's design and development department

'Nakheel continues to readjust its current business objectives to match supply and demand in the most effective way,' spokesperson said.

Nakheel cut its staff by 500 people in December and has delayed work on a number of high profile projects, including Trump International Tower and Hotel on Palm Jumeirah, Waterfront, Palm Jebel Ali and The Universe.

Related