Advertisement
Last updated: 26 november, 2009 - 13:24 GMT

Dubai announces debt payment delay

A metro train passes by Jumairah Lake Towers in Dubai

Dubai's financial health has come under scrutiny after a major government-owned investment company asked for a six-month delay on repaying its debts.

Dubai World, which has total debts of $59bn is asking creditors if it can postpone its forthcoming payments until May next year.

The news has caused great concern because, if Dubai starts defaulting on its debts, countries around the world will be affected.

Dubai World has business interests in many countries including the UK, South Africa and across the Gulf, and has borrowed heavily to invest in new projects. However, it has warned that it does not have enough money to pay back a $3.5bn loan which is due in December.

Could this be the start of another financial crisis? Listen to Ben Thompson and Jane Kinninmont report.

To play this content JavaScript must be turned on and the latest Flash player installed.

Play in either Real OR Windows Media players

To play this content JavaScript must be turned on and the latest Flash player installed.

Play in either Real OR Windows Media players

First broadcast on World Business News

Explore the BBC

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.