Company Lookup
عربي
Download Demo
 

Market News

This Month News

This Month News

send to a friend by email

Dubai holding unit mulls asset sales after 2009 loss

2010-06-02

DUBAI (Reuters) - Dubai Holding"s main unit said it may resort to asset sales to deal with its debt after posting a $6.2 billion loss for 2009, sending shares in Dubai tumbling as the market reacted to the latest setback for the emirate. Dubai Holding Commercial Operations Group (DHCOG), a unit of the conglomerate owned by the Gulf Arab emirate"s ruler, took a big hit on its exposure to Dubai"s property crash. The unit said it was in talks with banks to roll over debt and had access to emergency funding if needed as it renegotiated obligations to trade creditors. Among its high-profile assets is the Jumeirah Group of hotels. DHCOG said debt restructuring was not needed but it was considering the sale of certain assets to manage its cash flow. The loss increases the challenges for Dubai Holding -- one of the emirate"s three state-owned firms along with Dubai World and Investment Corporation of Dubai -- to meet its debt obligations, estimated at $14.8 billion out of a total $109 billion owed by the government of Dubai and its related entities. "Dubai Holding has always been lurking in the background as a serious problem to address once the situation with Dubai World had been clarified," said David Butter, head of Middle East and North Africa at Economist Intelligence Unit in London. "We now have a clearer view of the dimensions of the problem." "That said, DHCOG is carrying the bulk of Dubai Holding"s debt and it seems probable that it will have to reschedule some of its obligations," Butter added. Dubai"s main index closed down 3.1 percent with property stocks weakening on anticipation that DHCOG will sell more property units into an already saturated market. Bank shares fell on renewed balance sheet worries. "It is sure to have knock-on impacts on the entire economy. The banks will be seriously challenged to lend, so it"s all again part of a vicious cycle," UBS analyst Saud Masud said. "It will definitely have knock-on impact on banks. Their books will have to be revalued to make adjustments to the write off," he said. "The concerns in real estate markets are far from over."


 

2017-06-22
Al-Quds Index at its highest level in three years

2017-06-21
Al-fiter holiday announcement

2017-06-19
Delisting the Arab Palestinian Shopping Center BRAVO from the PEX

2017-06-15
Al-Quds Index rebounds upwards in mid-June

2017-06-08
Al-Quds Index in the red zone in the second week of Ramadan

2017-06-01
New anticipations appear with the start of June

 

 

 
Sahem Trading & Investments Company - PEX Member and licensed by PCMA
© All Rights Reserved 2013