Dubai World, the real estate and investment conglomerate, has reached an agreement with its main creditors and the government of Dubai over the restructuring of $23.5 billion (Dh86.31bn) of debt.
The deal has been clinched with the seven members of the co-ordinating committee representing 60 per cent of Dubai World's total bank lending over the "headline economic terms" of the restructuring proposals announced in March.
Aidan Birkett, Dubai World's chief restructuring officer, said: "We are pleased that we have received unanimous support in principle of the CoCom on the headline economic terms to our restructuring proposal. This is an important milestone and reflects our efforts to achieve the best possible solution for all stakeholders.
"The proposal puts the company on a sound financial footing and reflects the continued support of the government of Dubai and its lenders. It offers the company the ability to maximise the value of its assets over the medium to long term" he added.
The co-com members are British banks, RBS, HSBC, Standard Chartered and Lloyds, with two local banks Emirates NBD and Abu Dhabi Commercial Bank, and Bank of Tokyo Mitsubishi from Japan.
A statement from Dubai World said: "Post restructuring the company's financial indebtedness will be approximately $14.4bn and comprise two tranches, Tranche A of $4.4bn and tranche B of approximately $10.0bn, with five and eight year maturities respectively.
"Each lender will receive a rateable portion of both tranches and will be able to select options for its tranche B participations."
The different options give creditors who have lent in dollars or dirhams different options for re-payment terms, helping to satisfy the concerns of Emirati creditors over higher costs of funding in the UAE.
There are also different options for payment-in-kind arrangements and shortfall guarantees to creditors, which some creditors had regarded as important issues during the talks over the proposals.
"The final proposal has not changed in its fundamentals from the terms announced on 25 March 2010. In particular, there is no additional financial support from the Government of Dubai," the statement said.
The restructuring proposal requires the agreement of the rest of Dubai World's financial creditors, which the company said it was working to achieve.
fkane@thenational.ae
Martin Kohlhase, Assitant vice president, Moody's
"It's an important step to improve the credit environment here in Dubai and the UAE. It's been long awaited. Still, if core banks have agreed, it doesn't mean that necessarily it's a signed deal yet. It's a step in the right direction."
"We have a number of ratings under review. With regards to the Jebel Ali Free Zone, which is part of DW group, this may effect our ratings decision on them."
Haissam Arabi, chief executive at Gulfmena Alternative Investments
"This closes the main chapter but that doesn't mean we don't have a bumpy ride ahead. There are still issues such as Dubai Holding and other but this has been mostly discounted for. The air is not completely clear but the main chapter is," he says.
"Our instant view is positive, this is good news for both sides as this has been overshadowing sentiment and affecting the market's performance. The market has been longing for this to happen."
Mohieddine Kronfol, managing director at Algebra Capital
"It's a largely expected but positive development. It allows us to put issue of Dubai World behind us and focus on other companies that need to get their finances in order. I think they (holdouts among local banks) will ultimately fall in line. The market has largely priced in the expectation of an agreement."
Ali Khan, managing director and head of brokerage at Arqaam Capital
"Any time you have progress it is positive, we should see a positive reaction (from the markets) .... I suspect a mixed session: we still need to understand how the local banks are involved and the impact of the final terms."
Aris Kekedjian, CEO of GE Capital Markets, Middle East, Africa
"It will help put this chapter behind us and help the market look to the future. It's what we need. There are still a lot of global concerns that trump the retail concerns. Right now the markets are more globally focused, particularly with what's happening in Europe. But its progress in the right direction."
Zahed Chowdhury, Equity Sales, Almal Capital
"I think this is not anything new. It hasn't changed from what was suggested three months ago." "This means relatively little for debt markets. The macro headwinds coming out of the Eurozone are more than enough to keep investors and markets focused elsewhere." "I don't think it makes a whole lot of change for anyone in Dubai in terms of opening up credit markets to either sovereign or corporate borrowers."
*Reuters
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Venom
Director: Ruben Fleischer
Cast: Tom Hardy, Michelle Williams, Riz Ahmed
Rating: 1.5/5
The specs
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Fuel economy, combined: 12.8L/100km
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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How Sputnik V works
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
COMPANY%20PROFILE
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Asia Cup 2018 final
Who: India v Bangladesh
When: Friday, 3.30pm, Dubai International Stadium
Watch: Live on OSN Cricket HD
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
BUNDESLIGA FIXTURES
Saturday, May 16 (kick-offs UAE time)
Borussia Dortmund v Schalke (4.30pm)
RB Leipzig v Freiburg (4.30pm)
Hoffenheim v Hertha Berlin (4.30pm)
Fortuna Dusseldorf v Paderborn (4.30pm)
Augsburg v Wolfsburg (4.30pm)
Eintracht Frankfurt v Borussia Monchengladbach (7.30pm)
Sunday, May 17
Cologne v Mainz (4.30pm),
Union Berlin v Bayern Munich (7pm)
Monday, May 18
Werder Bremen v Bayer Leverkusen (9.30pm)
MO
%3Cp%3E%3Cstrong%3ECreators%3A%20%3C%2Fstrong%3EMohammed%20Amer%2C%20Ramy%20Youssef%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EMohammed%20Amer%2C%20Teresa%20Ruiz%2C%20Omar%20Elba%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
How much sugar is in chocolate Easter eggs?
- The 169g Crunchie egg has 15.9g of sugar per 25g serving, working out at around 107g of sugar per egg
- The 190g Maltesers Teasers egg contains 58g of sugar per 100g for the egg and 19.6g of sugar in each of the two Teasers bars that come with it
- The 188g Smarties egg has 113g of sugar per egg and 22.8g in the tube of Smarties it contains
- The Milky Bar white chocolate Egg Hunt Pack contains eight eggs at 7.7g of sugar per egg
- The Cadbury Creme Egg contains 26g of sugar per 40g egg
A MINECRAFT MOVIE
Director: Jared Hess
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Specs
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
What is Diwali?
The Hindu festival is at once a celebration of the autumn harvest and the triumph of good over evil, as outlined in the Ramayana.
According to the Sanskrit epic, penned by the sage Valmiki, Diwali marks the time that the exiled king Rama – a mortal with superhuman powers – returned home to the city of Ayodhya with his wife Sita and brother Lakshman, after vanquishing the 10-headed demon Ravana and conquering his kingdom of Lanka. The people of Ayodhya are believed to have lit thousands of earthen lamps to illuminate the city and to guide the royal family home.
In its current iteration, Diwali is celebrated with a puja to welcome the goodness of prosperity Lakshmi (an incarnation of Sita) into the home, which is decorated with diyas (oil lamps) or fairy lights and rangoli designs with coloured powder. Fireworks light up the sky in some parts of the word, and sweetmeats are made (or bought) by most households. It is customary to get new clothes stitched, and visit friends and family to exchange gifts and greetings.
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.