DUBAI GOVERNMENT TO GIVE $9.5 BILLION TO DUBAI WORLD Last year many investors in Dubai were left apprehensive when Dubai World requested a six-month delay on its loan re-payments. The news gained global attention however was later eased and now Dubai World has created a plan to restructure its debts which involves converting $8.9bn of government debt into equity. Their plan also includes a $1.5bn cash injection from the Dubai Financial Support Fund (DFSF) and the creation of comprehensive repayment schedules speared over the next five to eight years.
"This proposal represents the best possible solution for all stakeholders," Dubai World said. The plan has been supported by many financial institutions including Darahem Financial Brokerage where Ayman al-Saheb said “It boosts sentiment because this is a strong commitment," He said the companies could now begin "restructuring properly". "Information is key in the capital markets, and now that we have received some information, we definitely expect a good response from investors."
The news has rebuilt investor confidence as many look to gain the high financial rewards from low priced properties now available in Dubai.
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