Moody's publishes updated analysis report on Dubai Holding

According to the report, the company's A1 ratings
remain firmly supported by its close association with the government of Dubai and its role as one of the Emirate's most strategic corporate enterprises. The outlook remains stable.

"Since assignment of Dubai Holding's first ratings in January last year, the company has executed on many of its near-term strategic priorities and has started to produce additional revenues from the hand-over of large real estate projects, including Jumeirah Beach Residence", says Philipp Lotter, lead analyst for Dubai
Holding and Senior Credit Officer at Moody's Middle East Limited in Dubai (DIFC).

"Whilst its balance sheet is strong and carries fairly limited leverage today, ratings are constrained by our expectation of diversification, which may require larger external funding over time", Lotter adds.

The company's ratings remain supported by the group's intrinsic financial strength and the credit enhancement that can be derived from the financial strength of the Emirate and the group's ultimate majority owner, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, who is the Ruler of Dubai, as well as Vice President and Prime Minister of the United Arab Emirates (UAE).

Completion and hand-over of some largescale infrastructure projects in 2007 and only moderate increases in leverage are likely to further support debt protection ratios in line with Moody's assumptions. Ratings also benefit from the group's buoyant free zone operations and hospitality business under the strong Jumeirah brand. Ratings remain constrained by the group's significant and ambitious development portfolio, which is dependent on the sustained growth and stability of the region in general, and Dubai as a desirable tourist destination in particular, and therefore carries both execution and commercial risk. Ratings also reflect high concentration to a single economy, although Moody's expects the group to further diversify internationally over time.

"The ratings are well positioned at the current level, and the stable outlook indicates that a change in either direction is unlikely over the medium term, if the company continues to perform in line with our expectations, keeps leverage in moderation and remains as closely aligned to the government as it presently is", says
Philipp Lotter.

Dubai Holding Commercial Operations Group LLC (DHCOG), based in Dubai / UAE, is a wholly owned
subsidiary of Dubai Holding LLC (DH) and incorporates all the non-financial investment businesses of the group.

Dubai Holding was created in October 2004 to consolidate various large-scale infrastructure and investment projects of the Emirate of Dubai, and is 97.5% directly owned by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, who is the Ruler of Dubai, as well as Vice President and Prime Minister of the United Arab Emirates (UAE), and 2.5% by His Excellency Mohammad Al Gergawi, who is also Executive Chairman of the Group, as well as UAE Minister of State for Cabinet Affairs and Chairman of the private office of Dubai's Ruler.