Dubai’s been building without limits and now seeks debt hold on “The World” artificial islands project.
When the idea was conceived, money seemed limitless, their goals too: Real Estate developers Nakheel of the artificial island “World” project in Dubai now say they will ask creditors to accept a moratorium on debt worth billions of dollars, according to Al Jazeera.
The World is a man-made archipelago of 300 islands constructed in the rough shape of a map of the landmasses of the Earth, located 4 kilometres off the coast of Dubai, United Arab Emirates. Its islands are composed mainly of sand dredged from Dubai’s shallow coastal waters, and is one of several artificial island developments in Dubai. The project was originally conceived by Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai. The project has since been suspended due to a cash-flow problem.
“Dubai World intends to ask all providers of financing to Dubai World and Nakheel to a ‘standstill’ and extend maturities until at least 30 May 2010,” a statement issued by the Dubai Financial Support Fund reported, meanwhile, Nakheel was due to pay off nearly $3.5 billion in Islamic bonds in December.
Attempting to create a man-made wonder, the World islands have a lot of environmentalists in ire. Since the construction boom in the Arab state, Dubai World has found itself with $59 billion worth of liabilities.
Will a cash flow problem make or break The World? The marine life around the mega-project might hope so.
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