Dubai owner to sell off QE2

THE Clyde-built QE2 cruise liner could be sold off to pay off some of the Dubai owner's mounting debts.

State-backed investment firm Dubai World plans to sell a raft of assets owned by its private equity arm Istithmar.

Dubai World is saddled with debts equivalent to 14 billion and sent shockwaves through global markets last November when it asked to delay repayments to around 100 banks while it attempted to tackle its finances.

Istithmar bought the QE2 from Cunard in 2007 for $100 million (about 64m) amid plans at the time to transform it into a luxury floating hotel.

The liner, launched by the Queen in September 1967, was the longest-serving ship in Cunard's 168-year history. It crossed the Atlantic more than 800 times and carried 2.5 million passengers.