Four major banks from around the world are now taking legal action against Dubai's state-backed fund.
Royal Bank of Scotland, Commerzbank and their South African counterpart Standard Bank filed their complaints at a court in London in order to recover cash they claim to be owed from the Dubai Group last week, sources with knowledge on the matter have told Reuters.
And, according to the National, these financiers have now been joined in the legal proceedings by an Egyptian bank, which also alleges to be entitled to recompense from the emirate.
This case relates to an impasse lasting two years regarding the restructuring of the Dubai Group's debt with these lenders, which comes to a total of around $10 billion.
However, a spokesperson from the Middle Eastern state told the National the group remains hopeful of reaching a "consensual agreement" with its creditors in the near future, despite the beginning of these legal proceedings.
By Claire Archer