What assets Dubai could be forced to sell

Reuters

Published: 9:00AM GMT 30 Nov 2009

DUBAI WORLD ASSETS

DP WORLD

One of the world’s largest port operators is arguably the crown jewel in its
trophy cabinet. Its 2007 IPO, the region’s largest to date, raised almost
$5bn, but its share price has fallen by more than two thirds of its original
value. The firm went to reassure investors on November 26 it was not part of
Dubai World’s restructuring. Dubai World was in talks with a private equity
firm to sell a stake in the port operator.

STANDARD CHARTERED

Istithmar bought a 2.7pc stake worth about $1bn in October, 2006. The bank
signaled on Friday its exposure to Dubai World would not be material.

MGM MIRAGE

In 2007, Dubai World invested about $5bn in casino operator MGM Mirage by
buying shares and half of an $8.5bn Las Vegas project. Dubai World last year
sued MGM Mirage as credit dried up and CityCenter flirted with bankruptcy.
The project has been plagued by construction problems.

BARNEYS

Istithmar World bought US luxury retail chain Barneys for $942m in 2007.
Barneys hired restructuring advisory firm Perella Weinberg in August to help
it mull options that would shore up its financial position.

PERELLA WEINBERG

Istithmar also invested about $100m into the boutique investment bank in 2006.

CIRQUE DU SOLEIL

Property developer Nakheel and Istithmar bought a 20 percent stake in
Montreal-based international circus touring company in June 2008 and had
planned to build a theater with the group on its main palm-shaped island.

TURNBERRY GOLF COURSE

Leisurecorp, Dubai World’s leisure and sports investment unit, bought the
Turnberry Golf course, home to golf’s oldest competition, from Starwood
Hotels & Resorts in Nov 2008 for about $100m.

QUEEN ELIZABETH 2 LINER

Originally bought in 2007 for $100m to be converted into a luxury hotel and
moored off Dubai’s Palm, the ship’s future has been under scrutiny since it
docked at Port Rashid in Dubai last year for refurbishment. In July, Nakheel
said it was mulling moving the liner to another location, or Africa.

ATLANTIS DUBAI

The resort, which opened in November to a $50m firework display, is a joint
venture with South Africa tycoon Sol Kerzner.

DUBAI PRIZE ASSETS

EMIRATES

The airline, whose chairman also chairs Dubai’s supreme fiscal committee, has
$55bn of orders of planes from Boeing and Airbus. It has been at the
forefront of turning Dubai into an international hub and had been nearing a
potential share sale before the financial crisis hit. Emirates has
repeatedly fought back speculation it would merge with Abu Dhabi’s carrier
Etihad Airways.

DUBAI Aluminum (DUBAL)

Established in 1979, the aluminum producer has become one of the world’s
largest producers and exporters of the metal and in 2006 entered into a
joint venture with Mubadala Development Co, a wholly-owned investment
vehicle of the Abu Dhabi government to build one of the largest single
aluminum plants in the world.

LONDON STOCK EXCHANGE

Borse Dubai, which took a 21pc stake in the bourse operator in November 2007,
said in June it saw its LSE investment as long-term and had no plans to sell
its stake. LSE shares were among the biggest fallers on the FTSE 100 after
Dubai’s debt news.

HSBC

The investment arm of Dubai’s ruler Dubai International Capital (DIC) in 2007
bought an undisclosed stake in HSBC making it one of the largest investors
in Europe’s biggest banks. DIC in 2006 set up a fund aimed at buying into
some of world’s largest listed equities. The group earlier this year went
under restructuring and its chief executive left the company.

DEUTSCHE BANK

DIFC Investments, a unit of the Dubai international Financial Center, bought a
2.2pc stake in the German lender in 2007 in a deal worth about $1.83bn. The
DIFC’s governor was last week replaced as part of a shake-up Dubai’s
hierarchy.

SONY CORP

Dubai International Capital through its Global Strategic Equities Fund (GSEF)
bought a stake in the Japanese electronics and entertainment firm in 2007 in
what it described at the time as a substantial investment. Anyone who buys
more than 5pc of a listed company on Tokyo is required to report the stake
to regulators within five business days.

EUROPEAN AERONAUTIC Defense & SPACE COMPANY (EADS)

The GSEF also bought into Airbus’ parent company taking a 3.12pc stake, making
it one of the largest institutional investors in the aerospace group.

ALLIANCE MEDICAL

DIC also in 2007 bought Alliance Medical for $1.25bn with plans to expand one
of Europe’s largest MRI and CT scan services provider into the Middle East
and Asia.

EMAAR PROPERTIES

The Arab world’s largest property developer by market value is in the midst of
a merger with three other state-linked developers after a failed acquisition
in the United States and Dubai’s real estate market crashing left it
vulnerable. Still, its portfolio includes the world’s tallest tower Burj
Dubai, set to open in January, and one of the world’s biggest malls already
open.

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