Financial Regulatory Forum

By Amran Abocar and Nicolas Parasie

DUBAI, Jan 18 (Reuters) – Dubai said on Monday that half of a $10 billion bailout from Abu Dhabi last December came from an older debt deal, highlighting what analysts said was the emirate’s poor market communications and lack of transparency.

Investors said news that Abu Dhabi directly lent less new money than previously thought also indicated the wealthy emirate wanted more evidence of Dubai’s fiscal probity, after helping it avert an embarrassing default on a state-linked bond.

“The government works behind a high degree of opacity and I think market players have factored that in,” said Khuram Maqsood, managing director of Emirates Capital.

“The UAE is not known for exercising best practice transparency but that doesn’t mean they’re not trying. But I don’t think they’re there yet and I think people recognise that.”

A Dubai government spokeswoman said the last minute lifeline last Dec. 14 included $5 billion raised from Al Hilal Bank and National Bank of Abu Dhabi  which was announced on Nov. 25.

By Thomas Atkins

DUBAI, Jan 4 (Reuters) – Dubai opened the world’s tallest structure in a glitzy ceremony meant to put a brave face on crushing debt woes, leading some to wonder whether the tower is the emirate’s crowning glory or its last hurrah.

The $1.5-billion tower reaches up 828 metres (2,717 ft), 200 storeys into the sky. It surpasses the next highest inhabited building, Taiwan’s Taipei 101, by more than 300 metres (1,000 ft).

Dubai’s ruler, Sheikh Mohammed bin Rashid al-Maktoum, renamed the tower Burj Khalifa in honour of Sheikh Khalifa bin Zayed al-Nahayan, ruler of the emirate of Abu Dhabi, which has bailed Dubai out to the tune of $25 billion in the past year.

By Rania Oteify

DUBAI, Dec 31 (Reuters) – Corruption at Dubai’s state-linked companies is unusually high, the Gulf Arab emirate’s police chief said on Thursday, but tough new penalties introduced this week could help curb fraud.

Dubai, which shocked global markets in November with a request to delay $26 billion in debts linked to flagship firm Dubai World, has ramped up an anti-corruption drive in recent weeks.

The emirate has seen a series of high-profile fraud cases since 2008 involving top executives at government-related firms like property developers Nakheel and Dubai Properties, as well as Dubai Islamic Bank.

By Tamara Walid

DUBAI, Dec. 30 (Reuters) – Dubai has set up a panel to protect the creditors of troubled mortgage lenders Amlak and Tamweel, whose long-planned merger is slated for early 2010, in a bid to boost transparency.

The Gulf emirate’s reputation took a big hit over its request on Nov. 25 for a delay in repaying $26 billion in debt linked to flagship firm Dubai World. It has been trying to put its financial house in order in recent weeks.

Dubai has formed a judicial committee to protect creditors and companies related to Amlak and Tanweel, a statement from ruler Sheikh Mohammed bin Rashid al-Maktoum’s office said on Wednesday.

DUBAI, Dec 29 (Reuters) – Dubai’s ruler announced a new law to combat corruption, with the power to impose prison terms of up to 20 years on offenders as the emirate tightens financial rules in the wake of a debt crisis.

The law “comes in line with Dubai’s ongoing efforts to eradicate all forms of fraud,” according to a statement from Sheikh Mohammed bin Rashid Al Maktoum’s office on Tuesday.

It is the latest in several measures taken by the government in the wake of a debt bombshell on Nov. 25 when the Gulf Arab business hub said it wanted to delay repayment of $26 billion owed by its flagship company, Dubai World.

By Tamara Walid and Tessa Walsh

DUBAI, Dec 8 (Reuters) – Investor confidence in Dubai took a fresh knock on Tuesday as officials dithered over a rescue for debt-laden state conglomerate Dubai World  and ratings agency Moody’s slapped a downgrade on government-related debt.

“You can usually take the view that no news is good news, but in Dubai’s case it’s quite the opposite — investors need to hear some developments on Dubai World’s restructuring,” said Julian Bruce, EFG-Hermes director of institutional equity sales.

Leading lenders met Dubai World on Monday to negotiate over a $3.5 billion sukuk, the world’s largest, issued by Dubai World subsidiary Nakheel, builder of Dubai’s palm-shaped islands.