Archive | United Arab Emirates RSS for this section

Dubai World agrees debt deal with key banks

Today Dubai World said that it had reached an agreement “in principle” with most of its bank lenders to restructure debt worth $23.5bn (£16.4bn). It would be left with debts of $14.4bn after the restructuring.

Sultan Ahmed bin Sulayem

But the deal must still be approved by other banks that were not involved in the negotiations. The terms of the restructuring, include converting $8.9bn of government debt into equity.

The government of Dubai and Dubai World had tabled this offer to bank lenders in March 2010 after three months of negotiations.

Dubai World (Arabic: دبي العالمية‎) is an investment company that manages and supervises a portfolio of businesses and projects for the Dubai government across a wide range of industry segments and projects that promote Dubai as a hub for commerce and trading.

It is the emirate’s flag bearer in global investments and has 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 ports, and Nakheel, its property arm, which built The Palm Islands and The World developments, and Istithmar World, its investment company. It is chaired by Sultan Ahmed bin Sulayem.

Nuclear Security Summit

President Barack Obama open the 47-nation Nuclear Security Summit in Washington.  The president says he wants new commitments to secure weapons-grade plutonium and uranium to prevent nuclear terrorism.

With concerns about the nuclear ambitions of Iran and North Korea a major backdrop to the conference, this is the biggest U.S.-sponsored gathering of world leaders in more than 60 years.

The New START treaty was signed on April 8, 2010 in Prague by U.S. President Obama and Russian President Medvedev and Iran will hold the Tehran International Conference on Disarmament and Non- Proliferation, 2010, announced on April 4, 2010 and to be held April 17–18, 2010.

The Summit is the largest gathering of heads of state called by a United States president since the 1945 United Nations Conference on International Organization. Delegations from forty-six governments plus the United States are attending, thirty-eight of which are represented by heads of state or government. Read More…

Dubai World to receive government aid

The government of Dubai announced that it intends to provide $9.5 billion to Dubai World to allow the government-owned investment company to restructure its debt.

The announcement comes as part of Dubai World’s plan to restructure more than $23 billion of debt, including converting nearly $9 billion of debt into equity, after its collapse last fall.

The package includes $8 billion of funding to Nakheel, Dubai World’s real estate subsidiary, as well as $1.5 billion to Dubai World as a whole. The restructuring plan also seeks to, within eight years, repay all of Dubai World’s creditors. Read More…

On this day March 22, 1945

Egypt, Iraq, Lebanon, Saudi Arabia, Syria, Transjordan, and Yemen founded the Arab League, a regional organization that facilitates political, economic, cultural, scientific and social programs designed to promote the interests of the Arab world.

League of Arab States

League of Arab States

The Arab League currently has 22 members, Egypt’s membership was suspended in 1979 after it signed the Egyptian–Israeli Peace Treaty, and the League’s headquarters were moved from Cairo to Tunis.

In 1987, Arab countries restored diplomatic relations with Egypt and the country was readmitted to the league in 1989 while the league’s headquarters moved back to Cairo. In September 2006, Venezuela was accepted as an observer, and India in 2007. Read More…

Dubai receives bailout from Abu Dhabi

The government of Abu Dhabi in the United Arab Emirates has agreed to give US$10 billion to its neighboring emirate, allowing the state-owned Dubai World conglomerate to repay its immediate debt obligations.

Palm Jumeirah

Dubai says more than $4 billion of the injection will be given to Dubai World’s property firm, Nakheel, to repay its Islamic bond that matures Monday. The remaining funds will go towards additional expenses.

News of the last-minute bailout caused Asian stocks to rebound and pushed European shares up, which saw gains for a third straight session.

Markets in the UAE also rose, with Dubai’s index moving up by 10 percent and Abu Dhabi’s jumping by seven percent. Read More…

On this day September 14, 1960

At a conference held in Baghdad, the governments of Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela founded OPEC to help unify and coordinate their petroleum policies.

OPEC headquarters in Vienna

OPEC in Vienna

Venezuela was the first country to move towards the establishment of OPEC in the 1960’s by approaching Iran, Gabon, United Kingdom, Kuwait and Saudi Arabia in 1949, suggesting that they exchange views and explore avenues for regular and closer communication among petroleum-producing nations.

In 10-14 September 1960, at the initiative of the Venezuelan Energy and Mines minister Juan Pablo Pérez Alfonzo and the Saudi Arabian Energy and Mines minister Abdullah al-Tariki, the governments of Iraq, Iran, Kuwait, Saudi Arabia and Venezuela met in Baghdad to discuss ways to increase the price of the crude oil produced by their respective countries. Read More…

Largest cut in OPEC’s history

The Organization of the Petroleum Exporting Countries (OPEC) has drastically cut the daily production of oil by 2.2 million barrels per day (bpd). In a decision reached in Oran, Algeria, energy ministers from all 12 OPEC members agreed to make the largest cut in OPEC’s history.

opecOil prices have fallen from a high of $140 in July to just around $40; a decrease of $100. OPEC has cut 4.2 million bpd since September, when the price of oil decreased suddenly over fears of a global recession and lower usage of oil.

With this new decrease, production by OPEC members will be 24.845 million bpd. Saudi Arabia is taking the majority of the cut by decreasing their production by 1.2 bpd. Read More…