Nakheel to split from Dubai World in an unspecified time frame
Nakheel will separate from its parent company, Dubai World, to become a government-owned entity, according to the local media. This is expected to happen by June, a month or so henceforth, when the restructuring process will be completed.
“Nakheel separation has not occurred as yet, but will happen once the restructuring is finalized, which is due to be completed by June,” a company spokesperson told Emirates 24/7.
Last month, reports in the local media stated that Nakheel’s operations plan was fully funded by the Dubai government, and it allowed the company to sell assets going forward.
“The operations plan in the later years does have ongoing sales of assets (land and built form) in the normal course of business. And it is fully funded by the Government of Dubai,” a spokesman had said.
Going back to the Amlak/Tamweel saga that started right after the eruption of global financial crisis in 2008 and continued until May 2011 when Tamweel shares were re-listed for trade on the DFM, it is abit puzzling how the separation between Nakheel and Dubai World could be possibly metriliaze in a month long time frame.
Government entities and conglomerates have complicated structure and are often engaged in lengthy bureaucratic procedures, developed and executed by a large number of administrative staffs. This could be even more complicated when it comes to restructuring of monstrous amounts of assets and liabilities.
Giving analysts the benefit of the doubt could help companies, creditors and customers to position themselves for a really predictable future growth.
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