Dubai Strives to Fulfill its Commitments

A senior official of Dubai Government declared that the Government of Dubai is capable of honoring and meeting its commitments internally as well as externally.

The Director-General of Dubai Finance Department, Abdul Rahman A Saleh expressed the restructuring of Dubai World as a natural phenomenon which can occur in many countries and companies.

Al Saleh also said: “Articles of association of Dubai World stipulate that the emirate’s government shall not guarantee its debts,” he said, noting that a distinction should be made between the Government of Dubai and the group which is made up of several companies – including Nakheel and Limitless World – operating in various sectors.

“The media has blown the issue of restructuring part of the group’s debts including the delay of repaying Nakheel’s debts out of proportion,” he said, affirming that restructuring of companies is a frequent practice worldwide.

“The aim of restructuring is to allow the group to steam ahead with a new shape and keep abreast of changes.”

Al Saleh when asked to comment on the putting off ventures undertaken by the group, he said: “It is better and wise to delay projects that have not been executed yet.” He did not rule out selling of some assets in Dubai or abroad, saying: “Selling of some assets is a natural act in order to bolster the financial situation of the group in such circumstances.”

He added Dubai World is active in many sectors but it was only the real estate sector that was impacted by the international financial crisis.

“Dubai World was to meet its main creditors to discuss its request to delay repayment of $26 billion (Dh95bn) debt,” bankers told.

The bankers, who declined to be identified as the talks are private, said the meeting would take place in the afternoon without being more specific. A Dubai World spokesman declined to comment.