Dubai Group reaches final agreement with all financial lenders on restructuring of $6 billion of bank facilities
Dubai: Dubai Holding, the global investment holding company, said on Thursday its financial services arm, Dubai Group, has reached final agreement with all financial lenders regarding the restructuring of approximately $6 billion (Dh22.06 billion) of bank facilities.
“Another $4 billion of related party debt has been subordinated to the claims of the bank creditors,” Dubai Group said in a statement late on Thursday.
It added that as per the agreement, lenders agreed to extend maturity dates to December 31, 2016 for secured facilities and to December 31, 2024 for partially secured and unsecured facilities.
“We have successfully completed the financial restructuring of Dubai Group. This was a complex set of negotiations given the number of lenders involved. Now that all the restructuring required in Dubai Holding Investment Group (DHIG) is completed, we can focus without distraction on growing the Group’s commercial operations and enhance further its role in supporting Dubai’s growing economy,” Ahmad Bin Byat, Chief Executive Officer, Dubai Holding, said in a statement.
Dubai's property prices are expected to climb up to 40% more than last year, a top official said, as the emirate implements strict new rules to curb speculation.
In an interview with Bloomberg, Land Department General Director Sultan Bin Mejren said home prices may rise 35-40%, but the authority is planning on introducing new regulations later this year to limit the frequent buying and selling of off-plan projects, commonly known as 'flipping'.
“Transactions on off-plan properties are a little dangerous,” he told Bloomberg. “We are now studying them and looking at ways to ensure that they don’t hurt the market.”
He added the review would be completed by the first quarter and the real estate authority aims to implement the regulations by mid-year.
This is the latest in a series of regulations aiming to curb speculation that led to the fall of the market in 2008.
Last year, regulators doubled the transaction fee on new properties from 2 to 4% to limit the frequent buying and selling of properties. The Cental Bank also introduced a stricter mortgage cap, increasing the downpayment on properties made by UAE and foreign buyers.
Dubai to crack down on home flipping
Dubai plans new rules to control speculation on properties sold before they’re built after home prices climbed by more than 30 per cent last year, the head of the emirate’s Land Department said.
The real estate authority plans to complete a review of what are known as off-plan transactions in the first quarter and may introduce new regulations in the second or third quarter, Land Department General Director Sultan Bin Mejren said in an interview. Home prices this year may rise 35 per cent to 40 per cent, he said.
Shaikh Mohammed’s Decree No (49) of 2013 is the starting step of Dubai’s practical preparations to host the world’s largest and most prestigious exhibition.
His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as Ruler of Dubai has issued a decree on the formation of the Expo 2020 Preparatory Committee under the supervision of Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council.
Shaikh Mohammed’s Decree No (49) of 2013 is the starting step of Dubai’s practical preparations to host the world’s largest and most prestigious exhibition and the events and activities on its sidelines.
Pursuant to the decree, Shaikh Ahmed bin Saeed Al Maktoum, President of the Department of Civil Aviation and Chairman and Chief Executive of Emirates airline and Group, is assigned chairman of the committee and Mohammed Ibrahim Al Shaibani, Director-General of the Ruler’s Court, as vice-chairman. Further, the committee is composed of Reem Al Hashemi, Minister of State; Major General Khamis Mattar Al Mazeina, Chief Commander of Dubai Police; Hussain Nasser Lootah, Director-General of the Dubai Municipality; Mattar Al Tayer, Chairman of the Board and Executive Director of Road and
Transport Authority; Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation; and Helal Saeed Al Marri, Director-General of Dubai Department of Tourism and Commerce Marketing and CEO of Dubai World Trade Centre.
The committee will set the required strategic plans to organise and prepare for hosting Expo 2020 and will also evaluate the suitability and efficiency of Dubai’s infrastructure, including touristic, medical and transport facilities. The committee will also determine the emirate’s technical, security and economic requirements to present the international event in the best ways possible. Additionally, the committee will organise and coordinate efforts between various public and private entities, inside and outside Dubai, in all aspects related to Expo 2020.
The committee’s specialty also includes defining the programmes, activities and events that will be held on the sideline of Expo 2020, supervising advertising campaigns locally, regionally and internationally to promote the exhibition, supervising the promotion campaigns for the events taking place during the exhibition and coordinate efforts with the organisations specialised in this field.
The committee will submit its reports periodically to Shaikh Mohammed and brief him on the progress and outcomes of its efforts, in addition to any suggestions, to insure the success of the exhibition.
The decree asserted on the importance of full cooperation and coordination between all Dubai Government’s bodies to attain the objectives of the committee. Article (9) of the decree abrogate Decree No (2) of 2012 on the formation of Expo 2020 preparatory committee and its attached amendments; moreover, the new decree nullifies any other law or legislation that contradicts and/or challenge the rules and regulations prescribed in Decree No (49) of 2014. This decree is effective from the date of its publication in the Official Gazette.
DUBAI // The Crown Prince of Dubai is emulating his tech-savvy father by engaging with the public on social media.
On Monday he made the first contribution to the project with a short video of himself participating in extreme sports.
“Our achievements are driven by a positive energy and spirit that is felt by everyone who lives in our emirate, inspiring creativity and harmony and uniting more than 200 nationalities,” Sheikh Hamdan said. “In the fabric of Dubai there are more than 2.1 million stories – the individual lives and experiences of all those who call Dubai home.
“A city’s story is created by its people and as we look towards a prosperous future, it’s time to join together and show the world how 2.1 million people can create one remarkable story. Together we will create the world’s first autobiography of a city.”
Nakheel is to repay big chunks of its multibillion-dirham debts ahead of schedule and has no further need of financial aid from the Government.
Yesterday, the Nakheel chairman Ali Rashid Lootah said the company would repay more than a third of its total bank debt of Dh6.8 billion, due for repayment in September 2015, in the current quarter. A total of Dh4bn would be repaid this year.
“The early repayment of Dh2.35bn – a major milestone in the company’s history – reflects the strength of the local real estate market, significantly improved economic conditions in the UAE, and the growing trust and confidence among investors in Dubai and Nakheel,” Mr Lootah said.
“By 2018, we will be a debt-free company,” he added.
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