On 25 November 2009, the city-state of Dubai stunned markets by announcing that Dubai World, the flagship state holding company, would a six-month “standstill” looking at least $ 4 billion U.S. dollars of its $ 26 billion debt obligations. This case describes Dubai’s development strategy in detail and tells how, a number of state holding companies accumulated as part of this strategy billion of dollars in debt. The A case ends Sheikh Ahmed bin Saeed, Chairman of the Dubai Fiscal Co. .. Read more »

On 25 November 2009, the city-state of Dubai stunned markets by announcing that Dubai World, the flagship state holding company, would a six-month “standstill” looking at least $ 4 billion U.S. dollars of its $ 26 billion debt obligations. This case describes Dubai’s development strategy in detail and tells how, a number of state holding companies accumulated as part of this strategy billion of dollars in debt. The A case ends Sheikh Ahmed bin Saeed, Chairman of the Fiscal Committee of Dubai has to decide what to do about the financial difficulties of Dubai World and other state-owned holding company. The case, Sheikh Ahmed bin Saeed decide between three options: the government of Dubai to guarantee the debt, they can renegotiate the debt or on foot (ie default). The case B describes the decision and the reactions to this decision over the world and provides a new decision on the part of the bondholders of Dubai’s state-owned holding companies. The case of C. shortly analyzes the advantages and disadvantages of Dubai’s bankruptcy proceedings, both for investors and for the holding companies of Dubai.
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from
Aldo Musacchio
Andrew Goodman,
Claire Qureshi
Source: Harvard Business School
4 pages.
Publication Date: Jun 30, 2010. Prod #: 710070-PDF-ENG
Dubai: Debt, Development and Crisis (B) HBR case solution