With the emergence of China and other high performing economies in these times one may then ask what is Dubai World? This is the investment company which manages and controls a wide range of businesses including projects for the government of Dubai. It spans across a variety of industries which enhance Dubai as a base for trading and commerce. The Dubai World is headed by Sultan Ahmed bin Sulayem and plays a crucial role in the leadership of Dubai’s economy. It assets include Hakheel which built Palm Islands and DP World which nearly took over six US ports.
In terms of history, it was founded on March 2, 2006 by Vice President and Prime Minster of the United Arab Emirates and ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum. During that year it possessed over 50,000 workers in over hundred cities around the world. It now has significant investments in real estate companies in United Kingdom, South Africa and United States. Dubai World has a huge list of managed companies around the world. Some of these include Economic Zones World, Island Global Yachting, Dubai Maritime City, Infinity World Development (part owner of CityCenter), Inchcape Shipping Services, P&0 Maritime and Dubai Ports World (3rd largest port operator in the world).
After the global economic recession, the real estate market of Dubai declined after booming for nearly six years. The Dubai government and Central Bank started with a bail out system for the affected locally owned and foreign banks. Worldwide it laid off about 10,500 employees as it sought to restructure its debt with the help of Deloitte & Touché. This crisis eventually affected other markets around the world. The European stocks fell for over 3% on the 26th November, 2009. The next day, Asian stock market indexes also experienced major drops. European stocks however bounced back on the basis that the debt was recoverable enough to prevent another world financial crisis. Share prices on the markets in Dubai and Abu Dhabi are dropping like never before.
In November of 2009, Dubai World announced that they may delay their payment of about $26 billion debt owed its creditors. The magnitude of the debt caused a lot of shocks in the financial world driving down market indices and even the prices of oil.
This should go a long way to answer the question what is Dubai World?