Dubai to allow public equity in state-run cos

The Dubai government said it is planning to open leading Dubai-owned companies for public equity participation in order to restructure those hit hard by the financial crisis.

Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of Supreme Fiscal Committee, Dubai Civil Aviation Authority, and Chief Executive of Emirates Airline and Group, told the media on Sunday that Dubai will seek to diversify its funding sources though both debt and equity capital.

"I ask you all to like us, keep your focus on the future, because the future in Dubai is bright," Shaikh Ahmad said.
The government also announced the successful restructuring of Dubai World - its largest conglomerate that sought a standstill to restructure part of its then $59 billion debt.

"Investor perception of Dubai has improved substantially ... the response to the bond issues from Dubai entities are a proof to this," he said, adding that the government will now focus on Dubai Holding's restructuring.

"We continue to work towards improving the level of disclosure and transparency. We are holding open dialogue forums like this," he told the media gathering.

Sheikh Ahmed also said that Dubai was working to improve governance and the results were evident. Dubai World managed to reach a restructuring deal with creditors last year, allowing the government to tap into improved investor confidence to issue a $1.25 billion bond in September.