Dubai wants to repair the damage to its reputation after it roiled world markets with a request to delay debt payments late last year, said Nick Anstee, the 682nd lord mayor of the City of London.
In an interview after meeting government officials in Dubai today, Anstee said: “They are absolutely determined to mitigate that reputational damage by arriving at a solution because they want to continue to deal and trade with people who have been part of building Dubai to what it’s today.”
Dubai World announced Dec 1 it was seeking to alter terms on about $26 billion of debt. Property unit Nakheel PJSC, which is building palm tree shaped islands off the emirate’s coast, paid back $4.1 billion on Dec 14 for a maturing Islamic bond after Abu Dhabi bailed out Dubai.
Dubai World has so far failed to present a restructuring offer to lenders and declined to say when a deal could be struck.
While officials in Dubai’s government “were not putting a timetable, there is however a great sense of urgency on bringing this matter to a positive resolution,” said Anstee, who is the elected leader of the City of London, the UK capital’s financial district.
Anstee didn’t name any of the banks he discussed with Dubai’s government.
Barclays Plc, HSBC Holdings Plc, Lloyds Banking Group Plc, Royal Bank of Scotland Group Plc and Standard Chartered Plc are among UK based lenders that operate in Dubai.
