But one that’s sparked a big sell off around the world.
Thursday’s (late) statement from H.H. Sheikh Ahmed bin Saeed Al-Maktoum, Chairman of the Supreme Fiscal Committee:
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. 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.
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. “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. Further information will be made available early next week.”
His Highness 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.
Continuing HH Sheikh Ahmed bin Saeed Al-Maktoum said:
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.
Related links:
The emirate has a lot of explaining to do – FT
London unnerved by Dubai debt woes – FT
Dubai World to address investors – FT