It all looks so simple (click to enlarge):
And some snippets from the prospectus (our emphasis):
1 The Dubai World Guarantee guarantees all of the Co-Obligors’ payment obligations under the Transaction Documents.
2 The Co-Obligor Guarantee guarantees the obligations of each Co-Obligor under the Transaction Documents.
3 Mortgages granted by Nakheel Holdings 1 over the Property and Share Pledge granted by Nakheel Holdings 1 over shares to secure the payment obligations of the Co-Obligors under the Transaction Documents.
The obligations of the Guarantor under the Dubai World Guarantee constitute unsecured, direct, unconditional and unsubordinated obligations of the Guarantor which will at all times rank pari passu with all other unsecured and unsubordinated obligations of the Guarantor, save for such obligations as may be preferred by provisions of law that are both mandatory and of general application. Under the Dubai World Guarantee, the Guarantor shall enter into certain covenants (including a negative pledge and maintenance of ownership undertaking) the terms of which are set out in full in Trust Assets.
Dubai World is a public corporation established pursuant to Law No. 3 of 2006 issued by His Highness Sheikh Mohammed Bin Rashid Al-Maktoum as Ruler of Dubai. Investors should note, however, that the Government of Dubai does not guarantee any indebtedness or any other liability of Dubai World. Until the ports operating businesses currently owned by Ports, Customs and Free Zone Corporation (PCFC) are consolidated within Dubai World, the majority of the assets of Dubai World are located within the UAE. As a result of the majority of the assets of Dubai World being located in the UAE, there may be insufficient assets of Dubai World located outside the UAE to satisfy in whole or part any judgment obtained from an English court relating to amounts owing in connection with the Certificates. If investors were to seek enforcement of an English judgment in the UAE or to bring proceedings in connection with the Certificates in the UAE, then certain limitations would apply (see Enforcing foreign judgments in Dubai below).
You can view the whole thing in the usual place.
Related links:
“For the general purposes of the Dubai Financial Support Fund…” – FT Alphaville
“The Sun Never Sets on Dubai World.” Really? – FT Alphaville
Dubai World asks for debt ’standstill’ – FT