Dubai World have unveiled a restructuring plan which will see the group repay 100 percent of its $23.5 biliion debts through debt-for-equity swaps and new government funding.

The Dubai Government will be putting $9.5 billion itno new funding into the state owned conglomerate. Of this, $5.7 billion remains from loans from Dubai’s neighbour Abu Dhabi. The rest will be funded by the Dubai Government.

With the remaining $14.2 billion debt, Dubai World has proposed converting $8.9 billion into equity. The remainder will be repaid using two new lots of debt maturing after five and eight years respectively. The government will then provide $1.5 billion for working capital and to help cover interest payments.  Read more... (377 words, estimated 1:30 mins reading time)

It was one of the World’s most highly-anticipated and talked about building projects when it was first announced, but the World Islands Developments looks like it is starting to fall into disrepair.

The World Islands Developments was a massive project planned to sit in the shallow waters just off Dubai’s coast near the highly-hyped Palm Jumeirah. When it was first launched in 2003, the Press were quick to cotton onto the idea and the super-rich and celebrities were anticipated to flock to buy islands of their own. 11 billion cubic feet of sand and 47 million tonnes of rock later and the foundations for the islands were complete.  Read more... (286 words, estimated 1:09 mins reading time)

The tallest building in the world opens in Dubai for business this week. The Burj Dubai is at least 2,683 feet from base to tip – over half a mile high and more than 1,000 feet higher than it’s nearest rival, the Taipei 101.

The steel-ribbed, glass-clad structure also boasts the highest swimming pool in the world which is based on the 76th floor. There are plans for the world’s highest place of worship with a mosque on the 158th floor.  Read more... (256 words, estimated 1:01 mins reading time)

Celebrities are not immune from the Dubai property crisis with big names such as footballer David Beckham and actor Brad Pitt thought to have lost large sums of money as their properties plummet in price.

Nakheel, the island’s developer, and it’s parent company Dubai World are said to have made a request to suspend debt repayments. The request demonstrates the problems in the Dubai property market as Dubai World were one of the key driving factors behind the property boom in the area in the last few years. They have now asked creditors to give them some leeway on the $59 billion loans they have.  Read more... (218 words, 1 image, estimated 52 secs reading time)

Foreign construction firms have revealed that they are owed billions in unpaid invoices from Dubai property firms.

Some Japanese companies have said that they are owed so much money that they are starting to struggle. According to Otsuka, an Abu Dhabi based newspaper, among those companies affected are Mitsubishi Heavy Industries Ltd and Taisei Corp.

Dubai property development firms have struggled in recent months after the global economy took a beating, helping cause the property bubble in Dubai to burst. The Dubai property market has seen mortgage lending slump, property prices slump up to 50 percent in some areas, and a lack of people looking to buy.  Read more... (176 words, 1 image, estimated 42 secs reading time)

A new report has shown that the property market in Dubai is likely to remain weak and is unlikely to start it’s road to recovery before the latter half of 2010.

Dubai has suffered in recent months with buy confidence taking a severe blow despite several high profile developments. Many Dubai property investors are reported to be struggling to make their payments and this has resulted in falling property prices. According to a recent report by Egyptian investment bank EFG Hermes, some Dubai property prices have fallen by as much as 50% from their peak last Autumn.  Read more... (357 words, estimated 1:26 mins reading time)

The City of Arabia development is on schedule for completion in 2010. The $5 billion property development project has had to have several amendments made to it in light of the global economic changes of late, however the four major elements – the Mall of Arabia, Restless Plant, Wadi Walk and Elite Towers – remain.

80 percent of the homes at the City of Arabia are reported to have already been sold. Much of the remaining residential properties and commercial space is deliberately being held back and will be put up for sale when the development is nearing completion.  Read more... (161 words, estimated 39 secs reading time)