Gov't has injected $2 bln into Dubai Holding - FT

Gov’t has injected $2 bln into Dubai Holding – FT

The government is willing to put more capital into the loss-making conglomerate-FT.

November 16, 2010 9:51 by Reuters

The Dubai government has pumped $2 billion into Dubai Holding , taking control of the conglomerate’s financial restructuring, the Financial Times said on Tuesday.

The newspaper quoted Mohammed al-Shaibani, director of the Ruler’s Court, the body that coordinates the activities of government departments, as saying the government has already injected $2 billion into Dubai Holding and is willing to put more capital into the loss-making conglomerate.

“I don’t want to put any more money in as the government, but I will do it as and when it’s required,” he said.

The government also expects banks to accept some of the pain, as was the case in the Dubai World restructuring, Shaibani told the newspaper in an interview.

He said banks could expect to win advisory deals as the government considered future asset sales and privatisations.

“Priority will definitely go to banks that have been very supportive — we are very loyal customers,” he said.

(Reporting by Karolina Tagaris; Editing by Muralikumar Anantharaman)