One of the UAE’s leading businessmen, Khalaf Al Habtoor, on Thursday backed the Dubai government’s restructuring of Dubai World debt, saying it was “very encouraging for Dubai and the rest of the world”.
Early Thursday morning the Dubai government announced a $9.5bn restructuring plan which will see $8bn pumped into the trouble developer Nakheel and $1.5bn into Dubai World.
Speaking to Arabian Business, Al Habtoor said: “This is great news and very encouraging. The Dubai government will not leave the debt floating they are taking care of that. They’ve solved the outstanding debt as fast as possible.
“It’s not a small amount; this is a big amount of money so it’s very encouraging for Dubai and the rest of the world,” he added.
The plans announced on Thursday also include immediate payments in full to any Nakheel contracts owed up to AED500,000 ($136,120). Nakheel’s trade creditors were also offered 40 percent of the amounts owed in cash and the remainder in publically traded securities.
Al Habtoor has been a strong supporter of Dubai’s attempt to restructure its debt. Last month he told Arabian Business: “It [Dubai’s debt] is over exaggerated. I mean who doesn’t have debt? The United States is the strongest economy in the world – it’s called the reservoir of the money – and even they have debts in excess of $13 trillion.
“The United Kingdom, they have an excess of $9 trillion. If Dubai, one of their companies, not the government but a company which is related to the government, has a debt of $20 or $26bn, this [is] not a big deal.”
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