Abu Dhabi move to boost Aldar Properties
Abu Dhabi, December 9, 2010
Abu Dhabi bank deposits jumped this quarter, with most of the new cash coming from Abu Dhabi's government, prompting speculation that it may be creating a rescue fund for struggling developer Aldar Properties.
Bankers and analysts said yesterday the sudden rise in deposits may signal an imminent move by the government, which owns a 25.4 per cent stake in Aldar and lent the builder a hand in March, according to a report in our sister newspaper Gulf Daily News (GDN).
Shares in Aldar rose 5 per cent to a five-week high of 2.51 dirhams on talk the government support may be coming soon.
'From a shortfall in deposits compared to loans to a surplus now, it is a fact that the majority of the money came from the government,' a senior Abu Dhabi banker said.
'It could be a funding package for Aldar.'
Aldar said in November it was in the final stages of talks with the government over its cash needs and its chief financial officer said the framework for a cash deal is expected to be completed by the end of the year.