Dubai World cleared to up Mirage stake

Dubai World’s intentions to increase its investment in MGM Mirage have been given a green signal, according to an official at Dubai World. However, the executive added that it won’t happen in near future, « or at least until market conditions warrant such a move ». Dubai World took over 9.4 per cent of MGM Mirage last year with an investment of $6 billion (Dh22bn) and a 50 per cent interest in the $9.1 billion CityCenter development, which is now under construction. Dubai World will eventually acquire up to 20 per cent of MGM Mirage, according to an agreement with the company. « This is one of the most important of approvals that’s been granted to Dubai World, but we still need some additional approvals from other jurisdictions where MGM Mirage operates, » said the Dubai World official. Li Boon Yu, a Dubai World director and the business’ chief investment officer, was quoted in the local media in Las Vegas that the goal was to obtain all the necessary regulatory approvals before making any additional investments. « Market conditions aside, we want to get past these regulatory steps, » Yu said after the commission hearing, which was conveyed as an official statement form the company. He told regulators that Dubai World views its investment with MGM Mirage as a long-term relationship. MGM Mirage is working with Dubai World on the MGM Grand Abu Dhabi, a non-gaming resort that is part of a $5bn project. Yu said Dubai World is hopeful market conditions will get better sometime in 2009. « We are in constant dialogue with our bankers and everybody seems to be preparing themselves for 2009, » Yu said Vigyan Arya business24-7.ae