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Abyaar immune to Dubai World defaults
Abyaar Real Estate Development Company yesterday confirmed that it will not be affected by the spillover of the Dubai World defaults and its real estate arm, Nakheel.
The Abyaar Board Chairman, Hesham Al-Obaid said that the problems of the companies should be tackled through a purely professional commercial approach.
The announcement by the companies that they seek re-structuring their debt payments should not be blown beyond measure by the media, as it is likely to affect the confidence of investors, he cautioned.
The property sector in Dubai has already plunged by 50 percent since last year. The current happening, therefore, cannot be deemed to be the beginning of a collapse. The downfall in the region’s stock markets is mainly due to fears over re-structuring of the debt.
Dubai’s real property projects will bear the brunt of the fallout. The problem could affect Abyaar, being one of the real estate developers in the emirate, but Dubai still has a leading position in the Arabian Gulf region, and has the capability to overcome the problem successfully, said Al-Obaid.
He pointed out that Abyaar does not have any dealings with Dubai World. It only owns a plot of land worth KD4mn inside Dubai Maritime fortress project, being developed by Nakheel. All activities of Abyaar here are fully guaranteed and have enough funding for completion.
However, Dubai debt crisis has cast its shadow over the Kuwait Stock Exchange, as the market value bled at the start of the December sessions. Despite confirmation by the Central Bank of Kuwait that only two banks in Kuwait were exposed to the crisis, the fallout affected all sectors in the stock market, particularly property and investment firms.
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