Confidence in Dubai World & Nakheel
Dubai stocks have surged on the back of the news that the Dubai government is to aid the rescue of Dubai World and Nakheel, in a multi billion dollar package.
The companies have been the developers of some of the most outrageous property in Dubai, including The World Dubai. But some would say that the ambitious and iconic designs were poorly managed financially and both companies were effectively the worst hit by the collapse of real estate in the UAE.
Nakheel will benefit the greatest with an $8 billion allocation from a pot value of $9.5 billion, with both companies now having to produce new business plans as well as conforming to the requests of their creditors. This new pressure to show a revised approach to their business means a fresh break for the real estate market in the emirates, and eases tension in the fear that Dubai World & Nakheel’s financial difficulties were going to send the market crashing further.
With new measures being drawn up to protect investors looking for property to buy in Dubai, could it be that Dubai is about to turn a major corner?