The on-going global recession forces Dubai World to delay debt payments for six months. The rapid growth in Dubai, which saw the construction of Dubai's iconic man-made islands, luxury hotels and real estate, has been impacted by the world-wide recession. Following six years of rapid expansion, the economy has declined since the second half of 2008.
Reports from the major news providers state that Dubai's landmark construction projects were financed by loan payments and debt payments on US$3.5-billion of loans are now due. This has led to speculation the Dubai World will have to sell some of its prized assets to repay some these debts. Dubai World are owners of many famous brands including P&O, the British-based shipping and ferry company; DP World Southampton's container terminal; and Istithmar World, owners of the QE2.
Today there is still further uncertainty surrounding the QE2 and speculation about a potential sale have been widely circulated.
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