UAE Federal Cabinet raises capital of EMARAT nearly 30 percent
The federal government of UAE has raised the capital of the fuel retailer Emarat by nearly 30 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. At the time, Emarat had debt of around 1.9 billion dirhams, according to the FNC, as fuel subsidies imposed on 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 to fill up at rival sites. A third petrol shortage in 10 months has been going on for few weeks since stations owned by Emirates National Oil Company (ENOC) started to run dry in the northern emirate of Sharjah.
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