Dubai World, the Gulf emirate’s flagship conglomerate that has restructured $25 billion in debt, expects recovery in its critical businesses such as ports and free trade zones, a government statement said.
“The board of directors voiced confidence in Dubai World’s ability to achieve significant recovery in critical areas ... including ports, dry docks and free zones ... and has strong expectation of achieving profitability goals,” the Dubai government said.
The board passed a 2011-12 budget for Dubai World and its subsidiaries that aims to “strengthen the overall financial performance and raise the efficiency of its units to achieve high profitability in the coming period”, it said, without giving budget figures.
Dubai World units include DP World , which moved to cut its debt and focus on emerging markets by selling 75 percent of its Australian port operations for $1.5 billion in December.
DP World, considered one of the more profitable units of debt-laden Dubai World, had a first-half profit from continuing operations of $206 million, up 10 percent on a recovery in container volumes. (Reuters)