Gov't Official: Dubai World's Debt its Own

Ad Feedback

Market watchers are keeping a wary eye on the Dubai exchange Monday.

It's the first full day of full trading since a major investment and development company announced it's having trouble paying its bills. Uncertainty about what the rulers of Dubai would do caused some concern on world markets last week.

Dubai World is seeking a six-month delay in paying nearly $60 billion in debt. Analysts warn the crisis could affect global markets.

Investors had little news to go on Monday, but had plenty of questions. As a result, stock took a dive on the Dubai Financial Market.

The heavily indebted conglomerate is not guaranteed by the emirate's government, a top financial official from the city state said Monday.

"Dubai World was established as an independent company, it is true that the government is the owner, but given that the company has various activities and is exposed to various types of risks, the decision, since its establishment, has been that the company is not guaranteed by the government," Abdulrahman al-Saleh, director general of Dubai's Finance Department, said on Dubai TV.

"Consequently, the company's dealing with the various parties has been on this basis," he said.

Asian markets dropped last week after the news, but rebounded Monday, while European markets were slightly down.

Log in or create an account to post a comment.  

CBN IS HERE FOR YOU!

Are you seeking answers in life? Are you hurting? Are you facing a difficult situation?

Find peace with God, discover more about God or send us your prayer request.

Call The 700 Club Prayer Center at 1 (800) 823-6053, 24 hours a day.

A caring friend will be there to pray with you in your time of need.

 CBNNews.com

CBNNews.com

CBN News is a national/international, nonprofit news organization that provides programming by cable, satellite, and the Internet, 24-hours a day. Follow us on Facebook, Twitter, and Google+.