UAE gov't raises Emarat capital to $2.45bn

Federal government takes action to raise capital by 50% to help its indebted fuel retailer
UAE gov't raises Emarat capital to $2.45bn
Emarat petrol station
By Reuters
Tue 28 Jun 2011 09:14 PM

The federal government of the UAE has raised the capital of its indebted fuel retailer Emarat by 50 percent to AED9 billion ($2.45 billion), state news agency WAM reported on Tuesday.

In January, the UAE's Federal National Council (FNC) passed a bill allowing Emarat to borrow the equivalent of up to 50 percent of its capital.

Emarat had debt of around AED1.9 billion, the FNC said in January, as fuel subsidies imposed on gasoline prices by the UAE government hit the company's profits.

Emarat's petrol stations were dry in April after a payment problem with suppliers, prompting customers in the UAE, the world's third-largest oil exporter, to fill up at rival sites.

A third petrol shortage in the UAE in 10 months has been going on for four weeks since stations owned by Emirates National Oil Company (ENOC) started to run dry in the northern emirate of Sharjah.

The government of Sharjah, one of seven emirates in the UAE federation, was expected to discuss the shortage on Tuesday.

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