Dubai hires Rothschild to advise on rescue fund

DUBAI, April 2 (Reuters) - Dubai has named investment bank Rothschild [ROT.UL] to advise it on setting up a $20 billion fund to assist debt-laden companies in the Gulf's trade and tourism hub, a government statement said on Thursday.

In February, the Dubai government launched the $20 billion bond programme and sold the first $10 billion tranche to the United Arab Emirates central bank, a move that calmed worries the former boom town could default on some $15-$20 billion in debts due for refinancing this year.

"The establishment of the fund will be an important step towards bringing greater stability and confidence to the revised business plans of our state-affiliated entities, especially in the real estate sector," Nasser al-Shaikh, director general of Dubai's finance department, said.

"This will provide benefits across the economy of Dubai. I am confident that with the addition of Rothschild's expertise we will put in place an independent and rigorous process of qualification and oversight for the fund," he said in the statement. (Writing by Firouz Sedarat; Editing by Jonathan Oatis)