Dubai World debt amounts to dizzy 59 billion dollars

Nicosia, Aug 26 (ANI): The Government-owned conglomerate Dubai World owed 59 billion dollars in debts at the end of 2008, its property subsidiary Nakheel said in a financial exchange filing to NASDAQ Dubai.

This represents a big part of the Dubai Government debt, believe to amount to 80 billion dollars.

Nakheel revealed details of its parent firm as part of its obligations on a 3.5 billion dollars sukuk due in December.

Khaleej Times newspaper says that Government-owned companies in Dubai are under pressure to restructure as the emirate struggles to bolster its slowing economy amid the rising costs of financing its heavy debts.

Dubai recently announced plans to raise the second 10-billion dollars tranche of a 20 billion dollars bond issue later this year, and it has set up a support fund to distribute money raised from the bond.

Dubai but has been hit hard by a near 50 per cent drop in property prices in the emirate. It is entangled in a number of disputes over unpaid bills to foreign contractors.

Dubai World on Wednesday said it might withdraw from 4.5 billion dollars Malaysian maritime centre project, the latest in a series of setbacks for the emirate's government-run investment arm.

The group, which owns port operator DP World DPW.DI and Istithmar World, the owner of high-end retailer Barneys New York, announced on August 6 that it has postponed several projects, including tourism developments in Africa. (ANI)