subject: Middle East Business News [print this page] Zawya covers detailed information on the top 12, 000 companies in the Middle East with comprehensive live news coverage through the exclusive Zawya Dow Jones newswire service. Their news service provides independent, financial news that you can trust providing a comprehensive view of the Middle East and the depth that both local and international investors demand focusing on the financial markets and economies of the Gulf region.
Zawya offers the Middle East Business News including Dubai World Seeks Creditors Meet On $23.5B Debt Plan, Qatar's Business Community Optimistic For Q3 2010 Outlook.
Dubai World plans to present details of its proposed $23.5 billion debt restructuring to creditors at a meeting in the emirate on July 22, according to a person familiar with the company's plans. "It's an important part of the process but a settlement is sometime away," the person who declined to be identified told Zawya Dow Jones Sunday. The government-owned conglomerate in May agreed in principle with its main creditors to restructure $23.5 billion of debt, lifting a cloud of uncertainty that had hung over the emirate's economy. The July 22 meeting is the next stage to securing a full agreement with all its creditors. The agreement in May with the creditors' coordinating committee accounts for about 60% of Dubai WorldDubai World's bank lenders. The remaining creditors holding 40% of the group's debt have yet to accept the deal. HSBC Holdings PLC (HBC), Royal Bank of Scotland Group PLC (RBS.LN), Standard Chartered PLC (STAN.LN), Lloyds Banking Group PLC (LLOY.LN), Bank of Tokyo Mitsubishi (BTK.YY) and local lenders Emirates NBD PJSC (EMIRATES.DFM) and Abu Dhabi Commercial Bank PJSC (ADCB.AD) hold $8.64 billion Dubai Worlds Debt. Under the terms presented in May the first portion, or tranche, of $4.4 billion will be paid in five years, with 1% annual interest in cash but no shortfall government guarantee. The second tranche of $10 billion will be paid over eight years, with 1% interest plus varying payment-in-kind interest and shortfall guarantees. Lenders will have to choose between three options, depending on their exposure and on their priorities in regard to the shortfall guarantee and payment in kind. The government of Dubai will convert $8.9 billion of debt and claims into equity in Nakheel, the real-estate arm of Dubai World, and commit to fund as much as $500 million of Nakheel's expenses and an interest facility of as much as $1 billion while maintaining 100% ownership of the company.
Qatar's economy proved its resilience against the financial crisis of 2008-09, helped by strong growth in its natural gas sector which registered a growth of 15% in real terms. Higher oil prices in 2010, compared to 2009 levels, have placed the government in a good position and the subsequent fiscal surplus will be utilized to supplement aggregate demand in the face of a protracted global recovery. The Qatar Statistics Authority reported that in real terms the economy grew 8.7% in 2009 with the non-hydrocarbon sector growing 9.6%. The IMF predicts a real GDP growth rate of 18.5% in the current year, underpinned by rising gas output and strong non-hydrocarbon growth. Expansion in the natural gas sector will also help many downstream sectors which in turn will drive manufacturing activity. Diversification into the non oil & gas sector is an important government policy and recently a QAR 10 billion bond sale was undertaken to fund various infrastructure projects and develop the country's domestic debt market.
Commenting on the findings of the survey Phil Strange, CFO of Dun and Bradstreet South Asia Middle East Ltd. said: 'Despite the continuing debt troubles of the Euro Zone which have given rise to renewed concerns of sluggish global economic growth, or potentially a double dip recession, Qatari businesses continue to have an optimistic outlook. Buoyed by a strong hydrocarbon sector and continued investments in key infrastructure projects, the Qatari economy is expected to remain robust.'
by: Jack Authors
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