Dubai World Said Planning to Sell Prized Assets for $19.4 Billion

Dubai Atlantis
The Atlantis hotel, built on the man-made Palm Jumeirah island off the Dubai coast is shown. (AFP/Getty Images)
Dubai World plans to sell off some of its most prized assets in order to raise as much as $19.4 billion to pay off creditors, Reuters reported.

The state-owned conglomerate told investors last month that the need to restructure was "urgent", Reuters said, citing a document handed out at an investor meeting.

The document says Dubai World plans to dispose of assets including stakes in luxury retailer Barney's, Dubai's Atlantis Hotel and casino operator MGM Resorts International (MGM).

The company told investors that selling assets could generate as much as $19.4 billion over eight years.

The company urged patience, saying that selling the same assets now would raise no more than $10.4 billion.

"DW (Dubai World) lender recoveries (will be) significantly enhanced if DW is given time to rebuild and realize value over a five to eight year horizon," the document said, according to Reuters.

Dubai world also plans to hire a new managing director and chief financial officer, Reuters reported. Aidan Birkett, the officer-in-charge of restructuring, will remain in his post until December.

Istithmar, Dubai World's private equity unit, will raise as much as $4.5 billion over five years. The unit, which owns most of the company's overseas assets, has identified assets including ports operator DP World and Dubai Maritime City as "strategic assets" which could generate as much as $11.8 billion when sold over an eight year period.

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woody

who would go to Dubai when here in the US are beautiful national parks like Zion, Yellowstone, Great Smoky Mtns, etc for a fraction of the cost...i wouldn't go to Dubai or the middle east if they paid my way there and back

September 04 2010 at 6:49 PM Report abuse rate up rate down Reply
czmars

muslims are people too. they are gready just like lots of people around. what goes around comes around. thank you

August 25 2010 at 12:23 PM Report abuse rate up rate down Reply
ajgorm

Obviously we are influenced by these too big to fail coutries that believe their wealth will last forever.They will continue to be slaves to maintain their crumbling society due to greed maintaining momolithis symbols of oppression wirth no infrastucture in place. just big castles of doom.. Instead of using their money wisely they waste it on mortar and wood and sheik arabeaks that think too big to fail will last forever. FOOLs..Oppresive greedy fools.

August 25 2010 at 11:26 AM Report abuse rate up rate down Reply
Perry Allotta

NO matter what, all will be under They law " Islam" so will be Islam richness. If you are a MUslim then all this is for you, if you are not..forget it..!

August 25 2010 at 10:55 AM Report abuse rate up rate down Reply
junior

Their egos were overcome when the rest of the world realized that Dubai is horribly polluted, and all you see is brown and the blue of water. And then you can get arrested for kissing in public, who in the heck wants to invest in a place like this if you are not muslim? The rest of the world cannot follow their wacky laws and thus Dubai loses.

August 25 2010 at 10:11 AM Report abuse +2 rate up rate down Reply