Dubai Holding, the investment vehicle majority owned by the emirate’s ruler Sheikh Mohammed bin Rashid al-Maktoum, has secured a two month extension to a $555m loan due to mature in July.

The loan was provided by the UK’s Standard Chartered, Royal Bank of Scotland and the US’ Citigroup. The banks are still in discussion about a longer term refinancing of the deal. “The extension is required to facilitate the finalisation of the documentation to renew the facility,” said Dubai Holding in a statement.

Dubai Holding breached the covenants on the current loan in late 2009, but bankers “waived their rights in relation to the breach”, according to Dubai Holding.

Following the waiver, the facility is considered to no longer be in breach of its covenants.