Meraas Holding in talks with banks to raise up to $4bn

September 3, 2014 12:49 pm

Dubai’s state property firm, Meraas Holding is in discussions with banks to raise up to $4bn, sources aware of the matter said on Monday, Reuters reported. Dubai has bounced back rapidly from a debt crisis in 2008, when property prices fell by more than half, and state-linked property companies have started work on several major projects in the last two years. But the International Monetary Fund has already warned that Dubai may be at risk of allowing another speculative property bubble to form. Meraas, owned by Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum, has launched a number of projects in recent months, including a complex that will house five theme parks, including the first outside North Americaby Six Flags Entertainment Corp and an island featuring a giant Ferris wheel. “Meraas is looking for funds to build these mega-projects. Several banks were approached but they have not secured anything yet,” said an industry source with knowledge of the matter, who wished to remain anonymous as the discussions were private.