Dubai Financial Group, LLC owns a 12% stake in Bank Muscat, an Omani bank. Recently, the group has been trying to sell its shares based on a previous agreement that was made between the group and its creditors. Bloomberg’s data shows that the group’s shares are valued at approximately $300 million. The news about the partnership between Dubai Financial Group and Citigroup has been made public by a group of people that are working on the matter, but wish to remain anonymous. According to the source, a final decision has yet to be taken, however, the details are currently being debated.
In May 2016, another source confirmed that Dubai Financial Group is trying to access the money in order to pay back Natixis SA, its creditor. The initial agreement between Natixis and Dubai Financial was due in March 2016. The agreement allows Natixis to force Dubai Financial into selling their shares, in order to repay their debts. Moreover, Dubai was compelled into selling its holdings in EFG-Hermes Holding. In this case, Natixis bought the shares from Dubai Financial.
Dubai Financial Group was established in 2000 and is a subsidiary of Dubai Holding LLC. We tried to contact Dubai Holding for a statement, however, their representative refused to comment. Moreover, Citigroup hasn’t released an official statement either. The group is not the only company from the UAE that is in this situation. Among other companies, Dubai Holding was forced to delay its payments towards creditors due to the plummet of property prices subsequent to the 2008 worldwide credit crisis.