Kensington Swan to push ahead with Abu Dhabi office

The wider Gulf community will continue to lend support to Dubai, according to Kensington Swan chairman Clayton Kimpton.

The Auckland-based law firm is about to open a branch in Abu Dhabi, the capital of the United Arab Emirates and has more than five years experience working in the region.

This morning, financial markets awoke to the news that Dubai’s flagship company Dubai World was close to defaulting on what is effectively sovereign debt.

Earlier today it was reported the government of Dubai would ask to postpone payments on Dubai World’s debt, estimated at $US60 billion, until May.

Mr Kimpton said much attention was focused on Dubai because it is thought of as the jewel of the Gulf region.

However, he said the strength of the debt-free Abu Dhabi economy, the largest of the emirates, was often overlooked.

“Abu Dhabi provides one of the biggest signals of the continuing success of the UAE,” Mr Kimpton said.

“The focus on Dubai lacks perspective of the wider economy.”

Mr Kimpton said he was confident that Abu Dhabi or the wider gulf region would not allow Dubai World to default.

“But they will make Dubai feel some pain,” he said.

Dubai World is the parent company of Nakheel, the emirate’s largest property company.

A $4 billion bond issued by Nakheel is due for payment by December 14.