INNERVIEW Restructuring Restructuring Dubai World HH Sheikh Ahmed bin Saeed al-Mak<strong>to</strong>um – spearheaded Dubai’s attempts <strong>to</strong> recover from last year’s crippling debt crisis as head of the Supreme Fiscal Committee 28 Link January 2011
Dubai’s ruler HH Sheikh Mohammed Bin Rashid Al Mak<strong>to</strong>um appointed a new board for Dubai World DBWLD. UL, the flagship conglomerate which struck a deal <strong>to</strong> restructure $25 billion in debt earlier, appointing HH Sheikh Ahmed Bin Saeed Al Mak<strong>to</strong>um and key adviser as chairman. Sheikh Ahmed is also Group Chairman of Emirates Airline and a <strong>to</strong>p adviser <strong>to</strong> ruler HH Sheikh Mohammed bin Rashid al-Mak<strong>to</strong>um. Other SFC members were also named <strong>to</strong> a new board of direc<strong>to</strong>rs, including Mohammed al-Shaibani and Ahmed Humaid al-Tayer. Dubai finance direc<strong>to</strong>r Abdulrahman al-Saleh is also a new direc<strong>to</strong>r. “The board’s functions include approving plans <strong>to</strong> restructure (Dubai World) and its affiliates, as well as approving the draft annual budget and final accounts and adopting its administrative and financial systems and those of its subsidiaries, the adoption of financing and borrowing from financial institutions and providing them financial guarantees,” said an official in a statement <strong>to</strong> local media. “The board is <strong>to</strong> also approve the sale and purchase and leasing of real estate, s<strong>to</strong>cks, bonds and other securities and other property belonging <strong>to</strong> (Dubai World) or its affiliates.” Also on the board are Hamad Buamim, Direc<strong>to</strong>r General of Dubai Chamber of Commerce, and Soon Young Chang, an advisor <strong>to</strong> the Investment Corporation of Dubai. State-owned Dubai World won credi<strong>to</strong>r support from all its credi<strong>to</strong>rs in November for a $25 billion restructuring plan, one of the first major miles<strong>to</strong>nes in resolving the debt headache which has plagued the Gulf Arab emirate since last year. In its debt deal, presented <strong>to</strong> credi<strong>to</strong>rs earlier this year and seen by Reuters, Dubai World had said there would be a new managing direc<strong>to</strong>r and chief financial officer for the company, whose assets range from shipping <strong>to</strong> real estate. “If they put the heaviest hitters in Dubai on the board of the company that was successfully restructured, I sense they realize that the DW s<strong>to</strong>ry is certainly not over yet,” said a financial industry source, asking not <strong>to</strong> be identified. Dubai World plans <strong>to</strong> sell its prized assets over a period of eight years <strong>to</strong> generate as much as $19.4 billion <strong>to</strong> pay off credi<strong>to</strong>rs, according <strong>to</strong> the restructuring proposal Restructuring HH Sheikh Ahmed Bin Saeed Al Mak<strong>to</strong>um INNERVIEW document obtained by Reuters. It said in the document asset disposals over an eight-year period will help generate up <strong>to</strong> a maximum of $19.4 billion, while similar sales based on current prices would be worth a maximum of $10.4 billion. “The appointment of Sheikh Ahmed is indeed significant and consistent with the ongoing reorganization of the management team of Dubai Inc,” said Chavan Bhogaita, head of credit research at National Bank of Abu Dhabi. “In my view the appointment is likely <strong>to</strong> be received positively by the inves<strong>to</strong>r community,” Bhogaita added. Haissam Arabi, Chief Executive and fund manager at Gulfmena Alternative Investments, said: “This is very good news, not only because of Sheikh Ahmed’s track record at Emirates group, but also as a statement from the government.” “The fact is Sheikh Ahmed is very good for Dubai World’s restructuring plan and will give more confidence <strong>to</strong> credi<strong>to</strong>rs that the government is very serious about fulfilling the obligations of the restructuring.” About Dubai World Global holding company Dubai World focuses on the strategic growth areas of Transport & Logistics, Drydocks & Maritime, Urban Development, Investment & Financial Services. Its portfolio contains some of the world’s leading companies in their industries, including Drydocks World, Economic Zones World, Istithmar World, Nakheel and majority ownership of DP World. January 2011 Link 29
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