Investment company's decision to seek debt freeze triggers fall in property shares
The world's financial markets have been left shaken after the Dubai government's investment company revealed it was seeking to delay repayment on a portion of its debt.
Dubai World, which has £35.9bn of liabilities from a number of companies, including Nakheel - the property firm behind the Palm Jumeirah, announced on Wednesday that it was requesting a six-month standstill. The news has since triggered fears that the Dubai government is also struggling with other debts.
Markets across the world were rattled by the news, particularly in Asia.
It has prompted fears among traders that the full impact of the financial crisis globally may not be over yet, the Telegraph said.
European markets have also been hit - in the UK, property shares fell sharply following concerns over a possible fire sale, where shares are sold at extremely discounted prices, of Dubai's British assets. These include Grand Buildings in London.
Construction firms involved in pivotal projects in the Middle East such as the Dubai Metro, also saw their shares fall, including Balfour Beatty and WS Atkins. Share prices for Land Securities and British Land also dropped.
No comments yet