MercoPress. South Atlantic News Agency

Dubai World promises investors will get their money back (in eight years)

The symbol of Dubai’s property development: Burj Khalifa, Khalifa Tower, the tallest man made structure with 828 meters, officially opened last January

Investors in Dubai World have been told they will get their money back - but may have to wait up to eight years. The Dubai government has pledged more than £6bn of new funding for the restructuring plans of its flagship investment vehicle, whose assets include the QE2 and Turnberry golf course.

Dubai World, which sent shockwaves through global financial markets last year when it said it would hold off on repaying its debt, still owed creditors other than the government almost £10bn in December.

The government said most of the £6bn would come from funds remaining from a loan made by its rich neighbour Abu Dhabi. A government spokesman said: “There is no new money from Abu Dhabi. This proposal is based on amounts remaining from the loans provided previously by the government of Abu Dhabi and from internal resources from the government.”

The plan offers creditors full repayment on the principal of their outstanding loans over a five- to eight-year period by issuing new debt.

Dubai said the support aims to ensure Dubai World and property development arm Nakheel is “key contributors to the strong economic future” of the city-state.

Aidan Birkett, Dubai World's chief restructuring officer, said the proposal - which still needs approval from creditors - represents “the best possible solution for all stakeholders”.

He said: “It follows extensive discussions with our creditors, a thorough review of Dubai World's businesses and significant financial support from the Government.

”It offers the company a strong future and the opportunity to maximise the value of its assets over the medium to long term”.

Key creditors representing 97 banks met on Wednesday to finalise months of talks on how Dubai World could restructure its debt, which represents a hefty slice of Dubai's estimated total debt of £68 billion.