UAE govt raises Emarat capital 50 percent to AED9B
UAE federal budget increase includes a major rise in budget for fuel retailer Emarat, following fuel shortage crisis in the last month - Reuters
June 29, 2011 10:30 by p.deleon
The UAE federal government has raised the capital of its indebted fuel retailer Emarat by 50 percent to 9 billion dirhams ($2.45 billion), state news agency WAM reported on Tuesday.
In January, the UAE’s Federal National Council (FNC) passed a bill allowing Emarat to borrow the equivalent of up to 50 percent of its capital.
Emarat had debt of around 1.9 billion dirhams, the FNC said in January, as fuel subsidies imposed on gasoline prices by the UAE government hit the company’s profits.
Emarat’s petrol stations were dry in April after a payment problem with suppliers, prompting customers in the UAE, the world’s third-largest oil exporter, to fill up at rival sites.
A third petrol shortage in the UAE in 10 months has been going on for four weeks since stations owned by Emirates National Oil Company (ENOC) started to run dry in the northern emirate of Sharjah.
The government of Sharjah, one of seven emirates in the UAE federation, was expected to discuss the shortage on Tuesday.
($1=3.672 UAE Dirhams) (Reporting by Humeyra Pamuk, Editing by Sami Aboudi and David Hulmes)