Dubai World, the heavily indebted United Arab Emirates conglomerate behind plunging global markets, is refusing to sell off its assets cheaply, a senior company official said in a report on Sunday. “The group has categorically refused in recent months to sell several properties and investments at low prices,” the official whose name was not revealed told Al-Ittihad, a state-run Abu Dhabi daily. “The sale of these assets should be on a fair, commercial basis, allowing the group to achieve its strategic long-term (goals) away from cyclical economic pressures,” the source was quoted as saying. Among the conglomerate's key assets are the QE2 cruiseliner and the Turnberry golf course in Scotland. Dubai, one of the UAE's seven city states, said Wednesday it intends to request a “standstill” for at least six months on the maturing debt of Dubai World, its largest and most-indebted state-run holding. Global stock markets sank on the news, with investors fearing a possible default by the emirate and its quasi-state corporates - liable for about $80 billion - could cause a wider debt crisis. But the source said a six-month moratorium would give the time needed to restructure the holding company under the supervision of a supreme committee charged with leading the emirate out of the crisis. The restructuring would focus on “real estate and foreign investment units that are most affected by the global crisis, with the exception of DP World, which has posted good results.” A previous restructuring in October saw the holding company reduce staff complements in its companies around the world by 15 percent and in Dubai by 25 percent. Dubai World said at the time that this would result in $800 million of savings during the next three years. DP World, a leading global port operator, said in January it was reviewing its expansion plans and putting a freeze on hirings due to a slowdown caused by the global financial crisis. Dubai World's refusal to offload assets at fire-sale prices to repay obligations, forced it to seek debt standstill.
