Experts hail move to boost DW capital base

The Dubai Financial Support Fund's (DFSF) proposal to boost the capital base of Dubai World and Nakheel by converting their large debt into equity will strengthen these companies, according to analysts.

"This will improve the standing of these companies in the international market where they can look forward to raise funds in the future," they added.

Most creditors wholeheartedly subscribed to the view expressed by Aiden Birkett, Chief Restructuring Officer of Dubai World. He said: "This proposal represents the best possible solution for all stakeholders. The proposal that followed extensive discussions with our creditors and a thorough review of Dubai World's businesses and significant financial support from the government certainly offers the company a strong future and the opportunity to maximise the value of its assets over the medium to long term."

A top official from a Dubai bank termed the Dubai Government move to convert its debts and claims on Dubai World into equity as a very proactive step at this point of time.