What is Dubai World & Nakheel?
Described on its Web site as “Dubai’s flag bearer in global investments,” Dubai World is a holding company with stakes in everything from ports to real estate and transport. It includes the world’s largest privately held real estate company Nakheel, which is the mastermind behind such architectural feats as the man-made residential islands, “The Palm Islands” and “The World.” Dubai World also invests in global markets through its investment arm Istithmar World, which boasts a “global footprint” in finance, capital, leisure, aviation and other business ventures. How severe is the debt? Dubai World is said to account for some $59 billion of Dubai’s $80 billion debt burden. Nakheel had been due to pay a $3.5 billion convertible loan which expires on December 14. More debts were due to be repaid next year. “This is not just a couple of billion story,” Turker Hamzaoglu, EMEA economist at the Bank of America Merrill Lynch Global Research told CNN. “For instance, Dubai has to service $10 bill
