Middle East up as Dubai World debt plan imminent

Dubai’s index made its largest daily gain for three months yesterday as investors bet on a Dubai World debt offer favourable to creditors.

Other Middle East markets rose, buoyed by firm oil prices and positive global sentiment.
Dubai World is about to present a plan on repaying £17bn in debt linked to its main property units, Limitless World and Nakheel. The offer may include more than two tranches in an effort to meet the needs of the 97 lenders to the government conglomerate.
Two of the restructuring options include repayment over three to five years with the principal discounted, and repayment over seven to nine years with no discount. How much of a “haircut” is included on the shorter-term deal depends on how much money Abu Dhabi stumps up.

Dubai Financial Market climbed 9.6 per cent to a nine-week high, while DP World, majority-owned by Dubai World, rose 5.6 per cent.

Abu Dhabi’s index rose 1.2 per cent to its highest finish since November, when Dubai World asked for a debt standstill.