Dubai to take over Limitless, Nakheel
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. 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. "Legal ownership will transfer to the Government of Dubai upon completion of Nakheel and Limitless's financial restructuring," the statement said.
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. As the transfer into government hands draws closer, the emirate last month created the Dubai Real Estate Corporation "to own and manage the properties registered in the name of the Government or any of its departments", according to a report from the official news agency WAM.
Nakheel and Limitless were behind some of the largest and most aggressive developments conceived in Dubai during the boom that preceded the financial crisis. Nakheel put its stamp on the emirate with a trio of palm-shaped islands and The World, an archipelago of man-made islands in the shape of a map of the globe. In 2007, Limitless announced plans for the Arabian Canal, a Dh224bn project that was to include a 75km channel cut into the desert near Dubai's south-western border.
The board also named Andy Watson as Dubai World's managing director and Junaid Rahimullah as its chief financial officer just a week after the formal completion of its financial restructuring on June 29. "With the appointment of two senior and experienced managers to the management committee, and with the restructuring process behind it, Dubai World and its portfolio of companies are well positioned to build on the very real value of its businesses and continue to grow to the benefit of the company, Dubai and the UAE," said Sheikh Ahmed bin Saeed Al Maktoum, Dubai World's chairman.
