Emirate acts to shore up economy

Dubai’s government said it will pump up to US$9.5bn into its chief conglomerate Dubai World and a key subsidiary as part of a long-awaited restructuring plan of the companies’ debt.

The chairman of the emirate’s supreme fiscal committee said in a statement today the support aims to ensure Dubai World and property development arm Nakheel are “key contributors to the strong economic future” of the city-state.

Sheikh Ahmed bin Saeed Al Maktoum, who is also the uncle of Dubai’s ruler, said the new funding will include US$5.7bn of the remaining funds from a bailout by neighbouring Abu Dhabi and “internal Dubai Government resources”.