This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8387710.stm
The article has changed 8 times. There is an RSS feed of changes available.
| Version 6 | Version 7 |
|---|---|
| UAE tries to reassure investors | UAE tries to reassure investors |
| (about 3 hours later) | |
| The president of the United Arab Emirates has moved to try to reassure the shaken nerves of investors. | The president of the United Arab Emirates has moved to try to reassure the shaken nerves of investors. |
| Sheikh Khalifa bin Zayed al-Nahayan issued a statement saying the UAE economy was in good condition. | Sheikh Khalifa bin Zayed al-Nahayan issued a statement saying the UAE economy was in good condition. |
| He also praised Dubai's leader, saying he managed daily "achievements". The Sheikh's comments come after almost a week of market turmoil. | He also praised Dubai's leader, saying he managed daily "achievements". The Sheikh's comments come after almost a week of market turmoil. |
| It was sparked when Dubai World, Dubai's highest-profile company, said it would reschedule part of its debts. | It was sparked when Dubai World, Dubai's highest-profile company, said it would reschedule part of its debts. |
| Verbal support | Verbal support |
| The UAE president said the Gulf region would not slip due to what he called the global financial crisis. | The UAE president said the Gulf region would not slip due to what he called the global financial crisis. |
| WHAT IS DUBAI WORLD? The emirate's flag bearer in global investmentsHas a central role in the direction of Dubai's economy Assets include DP World, which caused a storm when trying to take over six US portsProperty arm Nakheel built The Palm Islands and The World developments How Islamic finance missed heavenly chance | WHAT IS DUBAI WORLD? The emirate's flag bearer in global investmentsHas a central role in the direction of Dubai's economy Assets include DP World, which caused a storm when trying to take over six US portsProperty arm Nakheel built The Palm Islands and The World developments How Islamic finance missed heavenly chance |
| Sheikh Khalifa paid tribue to the ruler of Dubai - who is also his UAE vice president, prime minister and defence minister - saying Sheikh Mohammed bin Rashid al-Maktoum and his cabinet "face every morning challenges, but plan and remove all obstacles to score achievements". | Sheikh Khalifa paid tribue to the ruler of Dubai - who is also his UAE vice president, prime minister and defence minister - saying Sheikh Mohammed bin Rashid al-Maktoum and his cabinet "face every morning challenges, but plan and remove all obstacles to score achievements". |
| But his supportive remarks appeared to do little to soothe nerves in the region. Markets across the UAE fell sharply for the second day in a row. Shares in Dubai fell by 5.61% and Abu Dhabi fell by 3.57%. Qatar's main index closed down 8.27%. | But his supportive remarks appeared to do little to soothe nerves in the region. Markets across the UAE fell sharply for the second day in a row. Shares in Dubai fell by 5.61% and Abu Dhabi fell by 3.57%. Qatar's main index closed down 8.27%. |
| Those markets though have had less time to react to the news last Wednesday of Dubai World's debt standstill. They were closed for the Eid holiday last week. | Those markets though have had less time to react to the news last Wednesday of Dubai World's debt standstill. They were closed for the Eid holiday last week. |
| Major Western markets have had longer to process its impact and the major European indexes closed more than 2% higher on Tuesday. | |
| Nothing concrete | Nothing concrete |
| Last night, in its first statement since the crisis began last Wednesday, Dubai World unveiled something of its plan for restructuring $26bn (£15.8bn) of its borrowings. | Last night, in its first statement since the crisis began last Wednesday, Dubai World unveiled something of its plan for restructuring $26bn (£15.8bn) of its borrowings. |
| Although thin on detail, the firm said that it "intends to adopt a policy of regular communication and will provide further updates as the process develops". | Although thin on detail, the firm said that it "intends to adopt a policy of regular communication and will provide further updates as the process develops". |
| At the heart of the plans to reshape the business is its highest-profile arm, Nakheel, the property company that built the stand-out offshore Palm Island and The World developments. | At the heart of the plans to reshape the business is its highest-profile arm, Nakheel, the property company that built the stand-out offshore Palm Island and The World developments. |
| The company's former director of development, Sunil Gomes, told the BBC that Nakheel took on too much, too soon. | The company's former director of development, Sunil Gomes, told the BBC that Nakheel took on too much, too soon. |
| "When any company goes through the growth that something like Nakheel has done, you end up with a lot of people who probably don't have the necessary experience for the jobs they took on." | "When any company goes through the growth that something like Nakheel has done, you end up with a lot of people who probably don't have the necessary experience for the jobs they took on." |
| Hassaim Arabi, chief executive at Gulfmena Alternative Investments said the restructuring statement was good news. | Hassaim Arabi, chief executive at Gulfmena Alternative Investments said the restructuring statement was good news. |
| "It shows they are still committed to their payments and it removes all fears that this is a complete default," he said. | "It shows they are still committed to their payments and it removes all fears that this is a complete default," he said. |
| On Sunday, the central bank of the UAE stepped in and announced a facility to provide banks with extra liquidity. | On Sunday, the central bank of the UAE stepped in and announced a facility to provide banks with extra liquidity. |
| The liquidity will be available to all UAE banks as well as foreign banks operating in the Emirates. | The liquidity will be available to all UAE banks as well as foreign banks operating in the Emirates. |
| On Monday, Dubai's government distanced itself from Dubai World's problems saying that it would not guarantee the company's debt. | On Monday, Dubai's government distanced itself from Dubai World's problems saying that it would not guarantee the company's debt. |
| "[Creditors] think Dubai World is part of the government, which is not correct," said finance minister Abdulrahman al-Saleh. | "[Creditors] think Dubai World is part of the government, which is not correct," said finance minister Abdulrahman al-Saleh. |