Chairman of luxury hotelier Jumeirah Group said Dubai Holding, owned by the ruler of Dubai, will not sell or list Jumeirah Group in order to pay off debt maturing next year. Gerald Lawless said “Jumeirah and Dubai Holding are part of each other and Jumeirah is not going anywhere”. Markets around the world received a shock on November 25th when Dubai asked its creditors for a standstill agreement on $26 billion in debt linked to conglomerate Dubai World, and its two primary property units – Nakheel and Limitless World.
Abu Dhabi gave Dubai a $10 billion bond which allowed it to avoid defaulting on a $4.1 billion Islamic bond (sukuk) issued by Nakheel. Uncertainty about the debts of Dubai state linked firms increased on December 9th when a planned merger between three of Dubai Holding’s property firms was cancelled. Jumeirah Group manages 8 hotels, Including the iconic sail shaped Burj al-Arab hotel in Dubai, and has fourteen more under construction.
