The Business of… 2010’s underperformers
Strikes, debt and defaults; 2010 hasn’t been kind to a lot of UAE businesses. Here is our pick of the biggest underperformers in 2010.
December 29, 2010 11:22 by shafeer
Another shocker of the year was the billion dollar debt of Abu Dhabi’s shiniest property developer, Aldar. Bank of America Merrill Lynch said this November Aldar would need Dh9.8 billion by 2011 if it was to simply “survive.” And according to Bloomberg, the company currently has an outstanding debt of Dh.26 billion.
Aldar recently reported a nine month loss of Dh1.52 billion, posting its fourth consecutive quarterly loss at Dh.731.2 million. Aldar put these losses down to “lower property sales, provisions for bad debt and lower gains from fair valuations of the investment properties.” In other words, the real estate market is still on its knees. But after Dubai World, you may be wondering, how are we still shocked? Well, given the fact that Aldar is owned 40 percent by the government, news of such debt consequently cast a shady light on the stability of the capital’s otherwise solid economy.