Dubai World plans to save $800m in restructuring
Dubai World said that its restructuring is nearly completed, and would save the government conglomerate by up to $800 million in operating costs over the next three years, Reuters reported.
According to a statement issued by Dubai World, the company had reduced its global workforce by 15 percent to around 70,000 employee, amid the global economic turmoil, while its staff in the UAE was cut by 25 percent.
In June, Dubai World hired AlixPartners, the experts advising on the General Motors bankruptcy, to help streamline its business to cushion the effects of the economic crisis.
Dubai World said in the statement that each division is now more appropriately sized for the current market conditions.
It is worth noting that the firm's property unit, Nakheel, has $3.5 billion worth of Islamic bonds which mature on December 14, raisin questions about the government's plan for those bonds.
Dubai World also said that the management of Nakheel's shopping malls, including Ibn Batutta Mall and DragonMart in Dubai, were moving to a separate entity, Retailcorp World.
According to a statement issued by Dubai World, the company had reduced its global workforce by 15 percent to around 70,000 employee, amid the global economic turmoil, while its staff in the UAE was cut by 25 percent.
In June, Dubai World hired AlixPartners, the experts advising on the General Motors bankruptcy, to help streamline its business to cushion the effects of the economic crisis.
Dubai World said in the statement that each division is now more appropriately sized for the current market conditions.
It is worth noting that the firm's property unit, Nakheel, has $3.5 billion worth of Islamic bonds which mature on December 14, raisin questions about the government's plan for those bonds.
Dubai World also said that the management of Nakheel's shopping malls, including Ibn Batutta Mall and DragonMart in Dubai, were moving to a separate entity, Retailcorp World.