Dubai World Reaches $25 Billion Debt Deal (GULF)

Dubai World reached a formal agreement Friday to restructure $24.9 billion in liabilities, potentially saving the Gulf emirate from coming obligations. According to a Reuters report, "While Dubai World's agreement with most of its creditors is seen as a positive step for Dubai, the announcement on Friday came just days after a unit of Dubai Holding, the conglomerate owned by Dubai's ruler, said it will delay repayment on a $555 million loan, the second time it has failed to meet a repayment deadline." Andre Andrijanovs, a credit analyst at Exotix in London, expressed surprise at the speed of the deal to Reuters. "Most players had expected this outcome and that the restructuring would be completed by October or November. It is a surprise that it has happened so quickly and that an agreement was reached this week, and that be will a positive momentum for Dubai ... There are other situations though that need resolving such as Dubai Holding." The Reuters report notes that "Dubai World reached an agreement with over 99 percent of its creditors by value to restructure around $24.9 billion of liabilities, the Dubai government said. Dubai World said in a separate statement it was well positioned to close the restructuring in coming weeks." "The agreement formalizes a strong consensus about a fair and balanced restructuring proposal and is a key step to putting Dubai World on a sound and stable financial footing," Sheikh Ahmad Bin Saeed Al Maktoum, chairman of the Dubai Supreme Fiscal Committee said in the statement on Friday. The WisdomTree Middle East Dividend Fund ETF

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