Dubai could be forced to sell the QE2 cruise liner to raise cash for the emirate’s ailing economy, according to reports.
Advisers for Dubai World, the state-backed conglomerate, plan to sell a number of assets owned by Istithmar, its private equity arm. The money raised would be used to pay off some of Dubai World’s $22 billion debts, the Sunday Times reports.
Istithmar bought the QE2 from Cunard in June 2007 for £50 million and it arrived in the emirate in late 2008. Plans to turn it into an ultra-luxury floating hotel have never materialised.
The company, which is receiving advice from Deloitte, is expected to sell its assets individually rather than as a portfolio. It began the process last week when it sold a 13% stake in Indian domestic airline SpiceJet.
It has also entered into talks to sell Inchcape Shipping Services, the UK port agent, with a mooted $700 million price tag.
Istithmar has built up a worldwide portfolio of assets in recent years. It also owns the Mandarin Oriental hotel in New York and holds a 50% stake in Atlantis The Palm Hotel at the Jumeirah Beach resort in Dubai.