The world isn’t sinking

After four months of anxious waiting, the Government of Dubai, along with government-owned conglomerate Dubai World and real estate subsidiary Nakheel, released official statements on March 25 regarding the restructuring of billions of dollars in debt and the reorganization of both companies.   The emirate stated that it intends to support the debt restructuring plans of Dubai World and Nakheel “with significant financial resources, including…up to $9.5 billion in new funding,” according to the statement by Sheikh Ahmed bin Saeed al-Maktoum, chairman of the Dubai Supreme Fiscal Committee. Acting on behalf of the government, the Dubai Financial Support Fund (DFSF) will allocate $1.5 billion to Dubai World and $8 billion to Nakheel, of which $5.7 billion stems from unused Abu Dhabi loan proceeds. The remainder will come from internal governmental resources. Restructuring and reactions Dubai World’s $23.5 billion of outstanding debt is broken down between $14.2 billion in external debt