Dubai's amazing skyline with the Burj Dubai, one of the world's most expensive hotels, towering over the city

Dubai in 2009

The Building Boom Has Stopped

Dubai Wealth Fund Under Stress

Al Jazeera, September 13, 2009

Istithmar World, the sovereign wealth fund of Dubai, is reported to be considering a halt to investments as it undertakes an overhaul of its operations. Istithmar is one of the flagship companies of state-owned Dubai World, whose real-estate unit Nakheel is seeking to refinance $3.52bn Islamic bonds maturing in December.

The overhaul could lead to the sale of the fund or its assets, the news agency Bloomberg said.Istithmar, run by David Jackson, said recently that John Amato and Felix Herlihy, its co-chief investment officers, were leaving the firm to explore other opportunities.

Jackson’s job is also under review, the Bloomberg news agency said quoting people. However, Dubai World said on Friday that Jackson would continue to lead the company. “Reports that … David Jackson had left the company were incorrect,” a company spokesperson said in an e-mailed statement.

Reversal of fortune

A restructuring by Istithmar and its parent Dubai World may mark the most public reversal of fortune for a state-controlled investment firm since global credit markets seized up in 2007.

Dubai World has $59bn of liabilities, a large proportion of the Gulf emirate’s total debt.