Dubai denied on Sunday an earlier Dow Jones report that it is mulling a two-part deal, including one that may repay lenders 60 percent over seven years. The ruler’s media office said it has not made any offer to Dubai World creditors and no offer would come before March or April, according to Al Arabiya television.
Dubai World is in talks with banks on the debt delay — about $22 billion linked to its main property units Nakheel and Limitless World — but has yet to present a formal proposal.
The Dubai Financial Market General Index reacted sharply in the middle of today’s session, when the news broke out on the Internet.
Dubai’s handling of the debt crisis at flagship Dubai World will affect its ability to attract future investment, British Business Secretary Peter Mandelson said on Sunday, according Reuters.
