Dubai government won't help Dubai World

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Dubai government won't help Dubai World

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Shares on Dubai’s stock exchange tumbled on word that the country’s government will not sell any of its directly owned assets to help the heavily indebted and state-owned conglomerate Dubai World.

The company itself said it may dispose of some assets to raise cash. Last week it asked for a six-month payment delay while it restructures 17.5 billion dollars of debt. All this has left Dubai’s investors jittery; so, should they sell? Stock broker Fadi Ajaj thinks not. He said: “Of course there is panic going on right now, but my suggestion at this point is, if you are holding positions you are probably better off to hold on until it becomes much clearer. It’s really hard to make an investment decision based on the news we are hearing in the past few days.” Meanwhile, Kuwait’s government investment fund has reportedly said that it will invest the proceeds of its sale of a stake in Citigroup abroad and not in the local market. That is according to a newspaper quoting the country’s finance minister. Kuwait made a 742 million euros profit on the sale of Citigroup shares it bought two years ago.