United Arab Emirates

Local banks in Dubai have sufficient liquidity to weather a global downturn, the chairman of the Gulf Arab's largest bank and a key figure in its recovery from a 2009 debt crisis said on Monday, Reuters reported. Sheikh Ahmed bin Saeed al-Maktoum, who is also chairman of Dubai's Supreme Fiscal Committee, also said some local firms still had a way to go to rebound from Dubai's debt crunch. A deepening debt crisis in Europe as well as a slowdown in the United States have increased odds for another global recession this year.

Dubai has completed the "major bulk" of its debt restructuring and is comfortable in its ability to tap bond markets when it deems it necessary, a top Dubai official said Thursday, Dow Jones reported.

Dubai developer Nakheel , which completed a complex debt restructuring last month, wrote off up to 78.6 billion dirhams ($21.4 billion) of its real estate assets due to a property crisis in the emirate, according to a bond prospectus, Reuters reported. Nakheel, which overstretched itself building islands in the shape of palms and other ambitious projects, incurred impairments of 73.8 billion dirhams in 2009, primarily related to the carrying value of assets and capital work in progress.

Al Jaber Group yesterday held talks with its banks over a debt standstill agreement as the family conglomerate, based in Abu Dhabi, seeks to delay repayments as part of a wider restructuring of the group, The National reported. At a meeting in Abu Dhabi, Al Jaber Group, which has interests in property, manufacturing and aviation, submitted a draft standstill agreement and a business proposal to banks involved in its debt restructuring talks, said one person close to the company who asked not to be identified. "We're at a very early stage," the source said.

Dubai World will transfer two of the emirate's biggest property developers to the Government as it completes a debt restructuring in the wake of the financial crisis, The National reported. Agreements have been signed on the terms for the separation of Nakheel and Limitless "operationally and financially" from Dubai World, the board of directors said in a statement. In addition, Nakheel said it had secured unanimous approval from banks for its US$10.9 billion (Dh40.03bn) debt restructuring, which will trigger the issuance of a Dh6bn Islamic bond.

Nakheel PJSC, the builder of man-made islands off Dubai’s coast, said the company got the approval of all its bank creditors to restructure debt, Bloomberg reported. Nakheel “received acceptance from 100 percent of the banks and the required majority of its trade creditors giving their consent to the Nakheel restructuring plan,” it said today in an e-mailed statement. Nakheel also signed agreements on its operational and financial separation from Dubai World, it said. The legal separation will happen upon completion of Nakheel’s restructuring, the real-estate company said.

Indebted real estate developer Nakheel said on Thursday it had secured over 98 percent, or near unanimous, approval for its $10.9 billion debt restructuring plan from banks, Reuters reported. Under Nakheel's restructuring proposal, trade creditors would receive repayment through 40 percent cash and 60 percent in the form of a $1.63 billion Islamic bond, expected by the end of the first half.

Dubai's government says struggling state conglomerate Dubai World has signed a final agreement with creditors to restructure billions of dollars in debt, Bloomberg Businessweek reported on an Associated Press story. The emirate's media office announced the signing of the deal involving about 80 creditors Wednesday. It formalizes a tentative agreement reached last year. Dubai World secured full creditor support for its $24.9 billion debt restructuring plan in October.

Dubai Group LLC, the investment company seeking payment relief on $6 billion of loans, appointed eight banks to represent creditors in two committees as it tries to speed up agreement on a debt restructuring plan, Bloomberg reported. The committees were set up to bring the restructuring talks to a quicker conclusion, said a spokeswoman for Dubai Group, who declined to be identified because of company policy. The members have been selected to be representative of all lender groups, she said by telephone.

Drydocks World (DDW), a unit of debt-ridden Dubai World, expects talks on terms of its core debt to be concluded with months, after agreeing a new $200 million credit facility, an official statement said, Reuters reported. The shipbuilding arm of Dubai World said last year it was in talks with banks to restructure $1.7 billion in debt maturing in November 2011.