Dubai no longer needs a financial support to put its new mega development projects into reality
29/11/2012
When the financial crisis started affecting Dubai’s property market in particular, the government was supported by its neighboring rich Emirate, Abu Dhabi which is indeed the largest among the seven Emirates. For instance, the completion of the tallest tower in the world, Burj khalifa, was one of the projects in which the capital city has injected some amounts in order to finish such iconic project of Emaar Properties.
After a few years, the Emirate of Dubai was economically witnessing declines in stocks because of the strong impacts of such financial crisis that led all the property development companies to lacking of funds that prevented them to continue their individual real estate projects, including Nakheel Properties, a previous property arm of Dubai Holding Company which is wholly-owned by the Ruler of Dubai, Sheikh Mohammed Bin Rashid Al Maktoum, has had disputes with its investors. For this reason, the Government of Abu Dhabi has offered billions of dollars to Nakheel in order to repay some of its debts. However, some of the affected investors have still filed cases against the company; while others continued their trust until the latter proposed a restructuring agreement for its billions of debt. Fortunately, in August 2011, almost 98 per cent of bank lenders and creditors have agreed with Nakheel’s restructuring proposal. After that, the latter immediately separated from its parent-company, Dubai Holding; and became one of the entities of Dubai Government.
So far, as the Emirate’s property market has been on the track of recovery, it has decided to no longer ask for financial support; or rather Dubai doesn’t need a financial support from Abu Dhabi Government because of the fact that it can now recover independently.
With regards to the newly-approved development projects in Dubai, the Emirate has its own funds to be used for putting them into reality. In other words, according to Hani Al Hamli, Secretary General of Dubai Economic Council, he said that the economic crisis has really affected not only the Middle East region but throughout the world. However, despite the fact that the Emirate has been also affected, it will never ask for support from others such as financial institutions, and its neighboring emirate, Abu Dhabi; for it has its own resources that will be used in order to achieve such new initiative of the government.
After a few years, the Emirate of Dubai was economically witnessing declines in stocks because of the strong impacts of such financial crisis that led all the property development companies to lacking of funds that prevented them to continue their individual real estate projects, including Nakheel Properties, a previous property arm of Dubai Holding Company which is wholly-owned by the Ruler of Dubai, Sheikh Mohammed Bin Rashid Al Maktoum, has had disputes with its investors. For this reason, the Government of Abu Dhabi has offered billions of dollars to Nakheel in order to repay some of its debts. However, some of the affected investors have still filed cases against the company; while others continued their trust until the latter proposed a restructuring agreement for its billions of debt. Fortunately, in August 2011, almost 98 per cent of bank lenders and creditors have agreed with Nakheel’s restructuring proposal. After that, the latter immediately separated from its parent-company, Dubai Holding; and became one of the entities of Dubai Government.
So far, as the Emirate’s property market has been on the track of recovery, it has decided to no longer ask for financial support; or rather Dubai doesn’t need a financial support from Abu Dhabi Government because of the fact that it can now recover independently.
With regards to the newly-approved development projects in Dubai, the Emirate has its own funds to be used for putting them into reality. In other words, according to Hani Al Hamli, Secretary General of Dubai Economic Council, he said that the economic crisis has really affected not only the Middle East region but throughout the world. However, despite the fact that the Emirate has been also affected, it will never ask for support from others such as financial institutions, and its neighboring emirate, Abu Dhabi; for it has its own resources that will be used in order to achieve such new initiative of the government.
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