No Strategic Company on Sale, Says Shaikh Ahmed

DUBAI — Dubai never negotiated sale of any strategic company to raise funds needed to pay off debts, Shaikh Ahmed bin Saeed Al Maktoum, who heads Dubai’s Supreme Fiscal Committee and is the Chairman of Emirates Group, told Zawya Dow Jones in an interview on Wednesday.

Published: Thu 25 Feb 2010, 10:46 PM

Last updated: Mon 6 Apr 2015, 10:21 AM

The newswire quoted him as saying that Emirates Airline, Dubai’s flagship carrier, was never used as a bargaining chip when the emirate was in talks with the Government of Abu Dhabi over funding support.

“We never really talked in any way about any of our strategic companies with Abu Dhabi,” Shaikh Ahmed said in the interview at his office at Dubai International Airport.

“I know it’s always been the  rumour.”

Dubai last year said it plans to request a standstill on $26 billion of debt owed by one of its largest conglomerate, Dubai World. At the time, many people questioned what Dubai could offer to raise funds.

“When you think about what Emirates has achieved I think anyone would want to have equity in it,” Shaikh Ahmed said. “It’s a very successful business for Dubai.”

Emirates Group is one of Dubai’s most prized assets and one of the fastest growing airlines globally. The carrier indirectly contributes in the region of Dh40 billion to Dubai’s economy each year and is key to the emirate’s success story.

“If it wasn’t for Emirates, this market wouldn’t have been able to grow as it has. It’s a huge contribution,” Shaikh Ahmed said, highlighting the economic benefits to the emirate of a group that employs over 32,000 in Dubai.

The carrier currently operates a fleet of close to 150 wide-body aircraft, including eight A380s.

It has a further $55 billion of orders with Airbus, a unit of European Aeronautics Defence & Space Co., or EADS, and Boeing Co., and plans to increase this order.

“We’re in talks with Boeing and Airbus,” Shaikh Ahmed said. “We’re looking at buying more aircraft maybe as much as ten — either 777 or A330s.”

Emirates, the largest customer for the giant Airbus A380, also expects to receive a further seven superjumbos by March 2011, he said.

Shaikh Ahmed said that despite the global financial crisis, Emirates hasn’t had any problem securing aircraft deals. He also didn’t rule out the possibility of the company selling shares in an initial public offering to help finance aircraft purchases, and said that any offering would be well received.

“I think maybe one day,” he said. “If Emirates decided to IPO I’m sure it will be good, especially if it’s placed within the UAE stock markets.”

business@khaleejtimes.com