Global Arab Network | UAE marks national day with hope for Dubai markets to recover

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UAE marks national day with hope for Dubai markets to recover

Wednesday, 02 December 2009 11:30

UAE marks 38th anniversary of national day today (Wednesday) with hope for Dubai markets to pick up again.

Traders believe in a quick recovery for Emirates stock exchange, despite a second day of losses.

Abu Dhabi's ruler, who is also the president of the UAE, said on Tuesday that the national economy was in good shape.

Dubai World said on Monday that it had started negotiations with its lenders over $26 billion of debt owned by its main property firms, Nakheel World and Limitless World, that matures before the standstill deadline of May 30, 2010.

Global markets were alarmed when news first broke that Dubai World, which led Dubai's transformation into a regional hub for finance, investment and tourism.

Dubai's government has made clear it will not guarantee the debts of Dubai World -- the group has almost $60 billion in liabilities overall -- including those of units not included in the restructuring.

Dubai World's creditors have formed a committee comprising six banks that will meet with the troubled state-controlled conglomerate next week, a bank executive familiar with the matter said on Wednesday.

The committee includes two United Arab Emirates banks (UAE) and four British banks -- Standard Chartered (STAN.L), HSBC (HSBA.L), Lloyds (LLOY.L) and Royal Bank of Scotland (RBS.L).

"Emirates NBD ENBD.DU and Abu Dhabi Commercial Bank ADCB.AD are (also) part of the creditors' committee," said the executive, who asked not to be identified.

"There is a meeting next week," he told Reuters by telephone, without giving further details.

Emirates NBD and Abu Dhabi Commercial could not be immediately reached for comment during a holiday in the UAE. HSBC, Standard Chartered and RBS could also not be immediately reached for comment, while Lloyds declined to comment. (Reuters)

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