The government of Abu Dhabi and the Central Bank of the UAE has announced that it has agreed to provide $10 billion to the Dubai Financial Support Fund, allowing Dubai World to repay $4.1 billion of Islamic sukuk bonds that are due to be paid on Monday.
Arabian Business
If you were one of those that bought Nakheels Sukuk last week, then congratulations on your 100% profit in less than 7 days - who's buying the beers then?
Oh - I found one...
HH Sheikh Maktoum Hasher Maktoum Al Maktoum, nephew of Dubai's ruler, tells Claire Ferris-Lay why reports of Dubai's debt have been much exaggerated.
While nearly all stock markets across the world were tumbling last week, HH Sheikh Maktoum Hasher Maktoum Al Maktoum was on the beach in the Maldives. News that state-backed Dubai World had asked to delay payment on its debt by six months didn't concern the nephew of Dubai's Ruler, HH Sheikh Mohammed bin Rashid Al Maktoum, in the least.
In fact, on the same day that Gulf markets opened for the first time following the four-day Eid break, Sheikh Maktoum, the CEO of the UAE-based conglomerate Al Fajer Group, was snapping up bonds for less than 50 percent of their value the previous week. He tells Arabian Business that he made a "significant investment" across three of the emirate's government bonds the first day Dubai's bourse opened following the news.
So the Western Banks take a haircut and Dubai massively reduce the amount of debt they owe... all in less than 7 days.
You couldn't make it up
