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Is Dubai Holding the next Dubai World?

By Anonymous

From The Times: Banks face fresh Dubai debt fears

FEARS are growing among western banks that Dubai Holding, the personal investment vehicle of the emirate?s ruler, Sheikh Mohammed bin Rashid al-Maktoum, will be the next state-owned Dubai company to default.

The conglomerate went on a debt-fuelled spending spree in the past decade, borrowing $12 billion (£7.3 billion) to fund ambitious projects ...

Together, Dubai World and Dubai Holding are thought to account for 60% to 70% of Dubai?s total debt. Research from Bank of America Merrill Lynch indicates that Dubai Holding has $1.8 billion due for repayment next year.

Just more potential losses for the Royal Bank of Scotland and HSBC.

Full post as published by Calculated Risk on December 06, 2009 (boomark / email).