Government-backed Dubai World has sold Atlantis, The Palm, to Investment Corp of Dubai as it seeks to raise capital to pay down debts following a restructuring in 2011.
In a statement, Investment Corp of Dubai, which is also state owned, said the move would allow for the development of the property and Dubai as a world-class tourism destination.
“Our acquisition of an asset that is a major contributor to the domestic tourist industry is in line with our overall strategy to support long-term sustainable growth for Dubai,” Khalifa Al Daboos, deputy chief executive officer, ICD, said.
The details of the sale were not disclosed.
Atlantis, The Palm had been owned by Dubai World subsidiary Istithmar World, with the parent company reorganising to alleviate up to $25 billion on debts.
The sale is part of a wider strategy by Dubai to balance its books, transferring cash from stronger state-backed entities such as Investment Corp to debt laden ones such as Istithmar.
Investment Corp holds stakes in Emirates Airline, construction giant Emaar, Emirates National Oil Company, Emirates NBD, Noor Islamic Bank, and Borse Dubai, the holding company for Dubai Financial Market and Nasdaq Dubai.
In turn, Dubai World needs to repay $4.4 billion in May 2015 under its restructuring terms.
Overall, Dubai is experiencing a strong recovery from the crash, and recently won the right to host Expo 2020.
Atlantis, The Palm
Atlantis was set up in 2008 as a joint venture between Istithmar World and Kerzner International.
In April 2012, Istithmar acquired Kerzner’s 50 per cent stake in the property for $250 million as Kerzner also battled debt problems.
The property itself has been markedly more successful, being recognised as the World’s Leading Landmark Resort by the World Travel Awards earlier this year.