• The 'Global Dream', a 342-metre cruise ship, in the main assembly hall of shipbuilder MV Werften in Wismar, Germany. AFP
    The 'Global Dream', a 342-metre cruise ship, in the main assembly hall of shipbuilder MV Werften in Wismar, Germany. AFP
  • The 'Global Dream' remains unfinished after its makers filed for bankruptcy in January. AFP
    The 'Global Dream' remains unfinished after its makers filed for bankruptcy in January. AFP
  • Several investors have expressed an interest in purchasing the cruise ship. AFP
    Several investors have expressed an interest in purchasing the cruise ship. AFP
  • A water slide designed for the 'Global Dream' sits in the assembly hall. AFP
    A water slide designed for the 'Global Dream' sits in the assembly hall. AFP
  • A new owner for the mega luxury liner could provide jobs for most of the 2,000 people that had been employed by MV Werften. AFP
    A new owner for the mega luxury liner could provide jobs for most of the 2,000 people that had been employed by MV Werften. AFP
  • The provisional insolvency administrator says the sale of the cruise ship, which has a gross weight of 204,000 tonnes, is one of his top priorities. AFP
    The provisional insolvency administrator says the sale of the cruise ship, which has a gross weight of 204,000 tonnes, is one of his top priorities. AFP
  • The 'Global Dream' was around 72 per cent complete when MV Werften closed. AFP
    The 'Global Dream' was around 72 per cent complete when MV Werften closed. AFP
  • Construction components for the cruise ship. Reuters
    Construction components for the cruise ship. Reuters
  • The cruise ship can carry up to 9,000 people when complete and will come with 2,500 cabins for families. Reuters
    The cruise ship can carry up to 9,000 people when complete and will come with 2,500 cabins for families. Reuters
  • Dream Cruises announced that the ship would have the first theme park concept at sea, complete with the 'world’s longest roller coaster at sea' and other features such as a bounce activity park, bungee trampoline and surf simulator. AFP
    Dream Cruises announced that the ship would have the first theme park concept at sea, complete with the 'world’s longest roller coaster at sea' and other features such as a bounce activity park, bungee trampoline and surf simulator. AFP
  • The project reportedly cost $1.8 billion to build. Reuters
    The project reportedly cost $1.8 billion to build. Reuters
  • The Global Dream is adorned with a cartoon fresco of astronauts and mermaids. Reuters
    The Global Dream is adorned with a cartoon fresco of astronauts and mermaids. Reuters

Set to be the world's biggest cruise ship, the 'Global Dream' is now seeking a buyer


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A number of potential buyers are lining up for Genting Hong Kong’s Global Dream — the unfinished mega-liner set to be the world’s biggest cruise ship by capacity — and a deal needs to be signed by summer when the company’s closed German shipbuilder will run out of cash, said the liquidator overseeing the sale.

Still, the ship will not be sold in a rush despite it sitting unfinished in a German shipyard that has filed for insolvency, according to Christoph Morgen, the German court-appointed provisional insolvency administrator for MV Werften, the shipbuilding unit owned by Genting.

The vessel’s sale, which began with three potential buyers, has now attracted a “significant number” of interested parties, including investors who are keen on it as part of a larger purchase that includes operator Dream Cruises, Mr Morgen told Bloomberg News.

“We will have a speedy process, but there is no need for a fire sale,” Mr Morgen said from Berlin. “Our target is to get the highest price.”

The Global Dream reportedly cost $1.8 billion to build and lenders had financed about €1.4bn ($1.6bn) for the ship’s construction.

Mr Morgen declined to give a price for how much it will cost to complete the ship but said he wants interested buyers to bid for the whole value of the completed vessel and not simply “completion costs plus a little on top".

The cruise ship is currently under construction. AP
The cruise ship is currently under construction. AP

Because Global Dream is so heavily financed — credit was provided by a consortium of more than a dozen lenders and four guarantee providers — a sale will not make much difference to Genting Hong Kong.

MV Werften’s provisional insolvency in early January was a critical turning point for the company, which became the world’s biggest cruise operator to seek court assistance to protect its assets during the Covid-19 pandemic when it filed a wind-up petition days later.

Genting reported a record loss of $1.7bn in May as the pandemic ravaged the cruise ship industry.

Mr Morgen said his priorities include finding buyers for the shipyards under MV Werften and the Global Dream vessel.

He is optimistic a deal will be struck before or by summer, when the shipyard in Wismar, Germany that is building the mega Global Dream runs out of money. Once that happens, it will be harder for the shipyard to return to normal operations, he said.

The 342-metre liner, about as long as a football field and designed to carry 9,500 passengers, was heralded as ushering in a new era of mega ships that could tap Asia’s growing cruising market.

The 342-metre liner is nearly as long as a football field and designed to carry 9,500 passengers. AP
The 342-metre liner is nearly as long as a football field and designed to carry 9,500 passengers. AP

Although some potential buyers are interested in only purchasing the Global Dream to add to their fleet, others are keen on a Genting package that gives them access to the Asian market, said Mr Morgen.

We will have a speedy process but there is no need for a fire sale. Our target is to get the highest price
Christoph Morgen,
the German court-appointed provisional insolvency administrator for MV Werften

Most of the interested parties are cruise ship companies or operators backed by private equity, he said. Some serious investors have already signed non-disclosure agreements to engage in talks.

“There are potential buyers looking at an entry package to enter the Asian cruise ship market by buying Dream cruises as a business plus vessels currently operated by Dream cruises, plus Global One and potentially Global Two,” said Mr Morgen, referring to the mega ships by their original generic names.

Billionaire Lim Kok Thay, Genting Hong Kong’s recently resigned chairman and chief executive, expressed early interest in purchasing the ship, said Mr Morgen.

The sale is not contingent on the buyer completing the ship’s construction at the Wismar shipyard where it now sits, he said.

A shipbuilder waits in front of the stern of the Global Dream. AP
A shipbuilder waits in front of the stern of the Global Dream. AP

The ship was about 72 per cent finished when the German government and Genting could not agree in December on plans to finance $620 million to help complete it and keep the shipyard in business, according to a letter Mr Kok Thay wrote to creditors in January.

Genting had a written plan by mid-2021 to wind up MV Werften and place it in a “solvent liquidation”, said Mr Morgen.

The fully financed plan detailed how MV Werften would pay all its creditors in the liquidation process, and the plan had been analysed by an independent auditor. It was decided that Global Dream would be the last vessel built by the shipbuilder and the company had stopped taking in any new customers, Mr Morgen said.

Although there was still some hope that alternative scenarios could be developed in order to continue operations, there was “no permanent continuation of the MV Werften business”, in the plan, Mr Morgen said.

“MV Werften planned to finish construction of the vessel, repay all debt, repay the state and have some equity value left,” said Morgen.

German Economy Minister Robert Habeck said his government did everything in its power to save MV Werften.

Mr Habeck said on Monday that the government would be willing to subsidise the final construction of the Global Dream with a “new reliable investor”.

If a buyer for the Global Dream contributes 10 per cent of construction costs, there is a “real chance” to secure the construction financing from the existing construction financing lender and convince the state to guarantee it, said Mr Morgen.

MATCH INFO

Day 2 at the Gabba

Australia 312-1 

Warner 151 not out, Burns 97,  Labuschagne 55 not out

Pakistan 240 

Shafiq 76, Starc 4-52

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Captain Marvel

Director: Anna Boden, Ryan Fleck

Starring: Brie Larson, Samuel L Jackson, Jude Law,  Ben Mendelsohn

4/5 stars

The candidates

Dr Ayham Ammora, scientist and business executive

Ali Azeem, business leader

Tony Booth, professor of education

Lord Browne, former BP chief executive

Dr Mohamed El-Erian, economist

Professor Wyn Evans, astrophysicist

Dr Mark Mann, scientist

Gina MIller, anti-Brexit campaigner

Lord Smith, former Cabinet minister

Sandi Toksvig, broadcaster

 

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Hotel Silence
Auður Ava Ólafsdóttir
Pushkin Press

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Updated: February 19, 2022, 4:00 AM