Nakheel given $2.45bn to meet obligations

When the money was given to Nakheel remains unclear

A Dubai fund designed to help state-linked firms had given Dubai World's property unit Nakheel $2.45 billion to meet obligations, Dubai's finance chief said on Tuesday, but it was unclear when the money was disbursed, according to Reuters.

"The fund ... has given about 9 billion dirhams ($2.45 billion) to Nakheel to meet its obligations," Abdul Rahman al-Saleh told Al Arabiya television.

In May, Nakheel's chief executive said it had received funds from the Dubai Support Fund, which has so far raised $15 billion from the UAE's central bank and two Abu Dhabi banks.

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Saleh said the money had been injected since "the crisis", but did not specify if he was referring to the global financial crisis which hit the emirate's real estate sector late in 2008 or the Dubai World debt issue.

Dubai World, the state-owned holding company seeking to reschedule $26 billion of loans, may need more than six months to complete its restructuring, he also said.

“The six months period will be short for a complete restructuring,” Al Saleh told Al Arabiya TV channel.

“The focus at this stage will be on the borrowers and contractors.”

Dubai World has assets and income to meet its debt obligations, and most of the company’s lenders are committed for the long term, he told Al Arabiya.

Dubai World, which surprised global markets by asking for a debt standstill as it tries to restructure $26 billion of debts, holds a majority stake in DP World.

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