Dubai may sell QE2 to tackle debt crisis

Dubai World, the state-run company at the heart of a default crisis that has sent shock waves through the global financial system, bought a string of prestige stakes and properties as the city grew. The team of auditors brought in by the government, led by one of Britain's leading experts in restructuring troubled firms, is to trawl through all the company assets with no options ruled out, the Queen Elizabeth II, the world's favourite cruise liner which was bought by Dubai World's subsidiary Nakheel to be turned into a floating hotel, is among them

Nakheel bought the QE2 for $100m in 2007, but by the time it arrived in Port Rashid a year ago its future was already looking uncertain. Since then, little has been done to put in place ambitious plans to saw off a funnel in favour of a glass penthouse and refit its suites and ballrooms into a floating hotel.

It was supposed to be heading off for South Africa so that visitors can look round during the World Cup next year, at least bringing in some revenue, but this now seems highly unlikely.

QE2