Dubai’s AED9bn ($2.45bn) injection into state-owned Dubai World was made as part of $10bn government aid to businesses, which was launched in February, a source familar with the matter said on Tuesday.
Dubai’s finance chief Abdul Rahman al-Saleh said earlier on Tuesday that the indebted conglomerate had received the injection after the start of the global financial crisis.
“The AED9bn was for Dubai World when we raised the $10bn,” the source said declining to be identified. “It’s not a new figure.”
A Dubai World source asked to comment said the conglomerate had received the money from the government, but it was “not new money”.
In February, the Dubai government launched a $20bn bond programme and sold the first $10bn tranche to the UAE central bank to help its businesses.
Dubai World, the state-owned holding company seeking to reschedule $26 billion of loans, may need more than six months to complete its restructuring, al-Saleh also told Al Arabiya television.
“The six months period will be short for a complete restructuring,” he said.
“The focus at this stage will be on the borrowers and contractors.”
Dubai World has assets and income to meet its debt obligations, and most of the company’s lenders are committed for the long term, he told Al Arabiya.
Dubai World, which surprised global markets by asking for a debt standstill as it tries to retructure $26 billion of debts, holds a majority stake in DP World. (Reuters)
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