Dubai

[winston]

I thought it would be a one day wonder. However, some of the participants have been hit quite badly and may sell into the rebound. And if the Gulf States get hit again, it could snowball into an Emerging Markets crash. May need to be a bit careful and nimble ..

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Dubai blackout over debt plans to hit Gulf markets

DUBAI : A lack of details on how Dubai plans to pay off its 80-billion-dollar debt mountain will hit Gulf stock markets sharply this week when they trade for the first time since news broke of the emirate's problems, analysts predict.

http://www.channelnewsasia.com/stories/ ... 68/1/.html

[kennynah]

i thought abu dabhi came out saying they would help their kid brother state?

it's only 80billion... these are sheiks...they produce oil in million of barrels everyday...80bil is small change to these people...

it seems that dubai is just intentionally screwing over those foreign lenders...

[winston]

it seems that dubai is just intentionally screwing over those foreign lenders...

There's probably no need for big brother to help them out.

Maybe they are short the indices ?

[kennynah]

i thought so... they cant be so poor as not to be able to afford 80billion.... and knowing the middle eastern people, "face" is their life....
i smell a rat here...

but i think ultimately, the message is crystal clear... lenders cant assume that their loans are secured.... even to sovereign states... this mentality can potentially cause another round of freezing of liquidity... reassuring such loans will get more expensive...credit swaps can get disrupted again...etc.... in worst case scenario...

[winston]

Dubai debt delays offer lessons
A QUESTION OF BUSINESS
By P GUNASEGARAM


Over-reliance on particular sectors to fuel growth can spell trouble.

THERE was a time when Dubai would do no wrong. This state, built up with oil wealth, had diversified into other things such as property, services and tourism, with oil and gas revenue dipping under 10% as a percentage of total revenue for the state.

It built up other areas systematically ploughing billions of dollars into the economy and resulting in a work force which was several times its own population.

The joke was that Dubai-ans did not work – the immigrants, mainly from the Indian sub-continent, did. For all its fabled fame and fortune, Dubai is now on its knees. And its not clear yet whether it can avoid being laid flat on its back.

It dipped just a bit too much into real estate and construction. Property prices dropped by half in Dubai after foreign demand dried up in the wake of the global financial crisis.

http://biz.thestar.com.my/news/story.as ... c=business

[millionairemind]

Nov 29, 2009
Dubai World rejects asset sale
DUBAI - A DUBAI World official says the conglomerate dismissed the possibility of selling some of its assets at a discounted price to cover some of the US$60 billion (S$83 billion) in debts coming due.

Al-Itihad newspaper on Sunday quoted a company source as saying over past months Dubai World 'rejected the idea of selling some of its good investment and real estate assets.'

Dubai World's holdings range from ports to real estate. It said on Wednesday it was seeking a debt payment deferment of at least six months that would also cover its real estate arm, Nakheel. That subsidiary has a $3.5 billion bond due next month.

The news roiled global markets and renewed fears that banks hammered by the global recession would be forced to absorb new losses. -- AP

[winston]

On CNBC:-

45% of the real estate in Dubai are owned by foreigners

They did not say whether it's Commercial or Residential but I would presume that they were talking about Residential Properties..

[winston]

On CNBC:-

The number of empty apartments is equal to 15 years of immigration

[LenaHuat]

I recall watching either a Discovery or Nat'l Geographic documentary on the marvels of Dubai. The Sheikh was filmed prevailing over a presentation by some of the world's architectural firms to showcase their ideas for new projects. Some minutes into the presentation, the Sheikh stormed out of it. The cameras followed him. Just before getting into his limousine, he gave the reason along these lines : "We are not interested in pedestrian projects. We want extraordinary ideas. ....". I could feel the snoot coming out of my TV set.

And now would Dubai end up like barren Ayers Rock, all of 348 metres tall and circumference of 9 km:-

[winston]

"We are not interested in pedestrian projects. We want extraordinary ideas. ...."

"Whoever that the gods wanna destroy, they first make him confident"..