bye bye dubai

"...
UK banks top Dubai creditors list

UK banks make up the biggest group of foreign creditors
for debt-swamped Dubai World and Royal Bank of Scotland is the most exposed ...

RBS is said to have between one and two billion US dollars
(£600 million and £1.2 billion) of outstanding lending to the emirate's beleaguered investment firm, according to the Financial Times.

It is understood HSBC, Standard Chartered and Lloyds Banking Group
are all exposed to the tune of around one billion dollars each.

Dubai World is labouring under nearly 60 billion US dollar (£36 billion) debts,
built up as it expanded its investment empire.

The company's projects include a hotel-entertainment complex in Las Vegas,
Dubai's famous man-made palm tree-shaped islands
and Scotland's historic Turnberry golf course ...

On Wednesday, rating's agency Standard & Poor's cut several Dubai entities,
including DP World, to "junk" status. :lol:
..."
(The Press Association)
 
It is interesting to consider the fact that the debt being restructured is 1/3 of the bail out of RBS (coincidently with one of the higher exposure to Dubai). And remember a restructure is acknowleding that it will be paid. Life here goes on - I have just got back from the Rugby Sevens - it certainly is not all doom and gloom.
 
The financial impact is not as significant as the RBS bail out - but thats not a reason not to be concerned by Dubai...it just means we suffer from bail out fatigue...it's still big sums to potentially write off.

Also the future growth that could be written off & the damage it does to the perception of the 'western model' in the middle east are big negatives.

A restructure anticipates it will be paid, however if the model is bust & the returns will not match the forecasts etc etc - it's just putting off the day of reckoning. This will be reflected in whacking interest payments etc.

The media have exaggerated it tho, it makes a good story what with the biggest the tallest yadayada & given the negative side to it all (environmental, human rights etc) schadenfreud has kicked in big time!
 
freakstar said:
I knew it would all be ok! ...
Click to expand...
forget it - absolutely nothing is ok there anymore !

or do you really think they voluntarily renamed the world´s tallest building
from burj DUBAI to burj CHALIFA :eek: :eek: :?:

... and more and more trouble to come:

"...
engineers delay Dubai work over pay row
..."
http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article6978828.ece


ps:
http://thephoenix.com/BLOGS/phlog/a...ing-opens-and-other-dubai-ridiculousness.aspx
 
Actually, Burj Khalifia has actually completely sold out and made a 10% margin on cost. They were not expecting to break even. The area surrounding, Downtown Burj Dubai (where i live incidently) is where the developers, Emmar (listed albeit the Government own a bit having giving equity in land) have made a killing and it is a superb place to live.

The fact that Abu Dhabi (richest City in the world) now appears to own Dubia must be positive for the fortunes for Dubai!

I agree that there have been some mammoth mistakes but those kicking Dubai should be looking at their own problems (ie UK debt, Greece meltdown, Ireland whitewash, Spain calamity) which seem somewhat more signigicant than the debt of Dubai (1/2 the cost of one bailout of a UK bank). I'd rather be a struggling member of the UAE than EU!

Generally, there is finally some optimisim in the market here and I genuinely believe the corner has been turned. I guess time will tell.
 
Doubt it - I went to Creamfields Abu Dhabi and lets just say it was different (not only because it was raining for the first time of the year!) I'd put my money on Beruit - amazing secret clubbing paradise
 
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