As part of fund raising effort Dubai world is ready to sell its prized possession. The strategic assets include DP World,Jebel Ali Free Zone and DMC(Dubai Maritime City). The debt pile is about $19.4 billion which has pushed Dubai World to fund raising. Many analysts feel that by selling these Dubai is disposing the crown jewels which is sorrowful.
Dubai has a wide built hub of global trade and business for past a decade and a main destination for many investments. The global trade of Dubai is a primary destination for investments for real estate and infrastructure projects. The global financial crisis had affected Dubai emirate as the property market crashed during 2008.
The markets of Dubai was shocked as it announced a standstill agreement and the debt restructuring about $26 billion dollars. The restructuring process of Dubai world has let sale Dubai itself says a person and these assets have a symbolic value. Even if Dubai has been reluctant to sell its priced assets at the beginning of the debt debacle, the debt restructuring included the sale of assets. Dubai hopes for a better time to come by and refinance the debt say Dubai based analyst.
If the global economy gets into recession in the coming months, then Dubai world may also be forced to go in for default which in turn could trigger steeper global recession. When the going gets tough, the entire system would collapse.
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