Dubai World Restructures

DUBAI — The government-owned conglomerate Dubai World is folding hotel and real estate assets from its Nakheel property unit into its Istithmar World investment arm, as part of the group’s restructuring. Several senior Nakheel executives have been transferred to Istithmar World as well, Dubai World said on Thursday.

Dubai World has at least $59 billion of liabilities, a large proportion of the emirate’s total debt. Its announcement was the group’s first public mention of specific assets it has chosen to restructure as it tries to slash costs and refocus its business to cope with the economic downturn.

Nakheel has been hit hard by the global financial crisis. Famed for its Palm Jumeirah and The World developments, Nakheel is under scrutiny for its ability to refinance $3.52 billion of Islamic bonds that come due in December.