November 27, 2009
Posted: 1404 GMT

Filed under: Economy •I-Desk Poll

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halozcel   November 27th, 2009 2:29 pm ET

A Bedouin Fiasco;

Dubai Palm Islands/Artificial Islands on Sea,namely,how can I bury $60-70 Billions into the Sea.

Dubai asks to delay debt payment on Artificial Palm Islands and shakes Confidence and feared the biggest Default.
It seems to me,Artificail Palm Island is the most illogical project in all times.Not Feasible not....Default is inevitable on that project.It is said $60 Bln,but,to me,more than 60 Bln.
It will rattle Borrowers' Confidence in Whole Middle East and may impact new Fluctuation at stocks.Sharp Sell-off may be possible on NYSE at open.

Let me tell a few words about USD Carry-Trade.
Those who try to do Carry-Trade by USDollars,over EUR/USD 1.50 or near,have to be more careful.USDollar may rebound 1.45 in short term.

Lost in London   November 27th, 2009 3:20 pm ET

I just moved to Dubai and work in the finance sector. I'm not concerned w the recent announcement because Dubai does have the funds to repay it's immediate outstanding debt. The core issue is the mishandling of the information and the lack of transparency in the decision making process at government level in Dubai. Nakheel (Dubai World) has had ongoing cash flow problems for some time and this is public information. Abu Dhabi stepped in to help them out (amongst other ailing Dubai entities). What has perplexed investors (local as well as international) is why not repay the Nakheel debt FIRST and then do some restructuring to Nakheel. Imposing a moratorium on a debt which can be repayed is creating a serious impairment to the Dubai brand. Irreparable harm has been done to Dubai as a financial hub and to the region as a result of the standstill announcement. Also it doesn't help that the announcement was made on the eve of a 5 day national leaves investors hanging with no answers which in turn creates havoc in the markets....

Muhammad Al Akhal   November 27th, 2009 3:30 pm ET

Dubai is a successful economic formula in the middle east, none of the Gulf states will let it fail.
Markets and media over react to the latest statement the debt been asked to delay is too small to stop the world or even the UAE recovery.

elmiro anselmo dos santos   November 27th, 2009 4:29 pm ET

in our global village, everything is worrying !

Keira   November 27th, 2009 5:43 pm ET

Over spending and excessive lavishness is an international disease. One hopes everyone can pay their debts on time, but sometimes people/countries bite off more than they can chew.

Vulk   November 27th, 2009 6:18 pm ET

Dubai is hoping that by the time they return after Eid, everything will have died down and they would have saved a lot of face. Abu Dhabi must be laughing their heads off!

Johansson   November 27th, 2009 6:28 pm ET

Don't know how it is going to effect middle east, but I am confident this is not a global crisis, just something local, atleast, as long as nothing new comes up.

Paying debts on time is important, but secondary to being able to pay debts some time. Under the circumstances, flexibility is a virtue.

Vasuki   November 27th, 2009 6:38 pm ET

Markets are overreacting to Dubai's announcement.All athat Dubai Worls has asked for is rescheduling and they have never told they will default.Dubai is a wonderful city led ably by His Highness Sheikh Mohammed and I am sure once the markets hear from Government of Dubai next wekk the markets will bounce back.God blesss Dubai and Dubai will sure bounce back and will become one of the best cities to live in.

Ahmed Salisu   November 28th, 2009 1:14 pm ET

This dubai debt problem is terrifying. I fear the blinding glare of the setting sun!

Nik   November 29th, 2009 10:40 am ET

World's Tallest Building,
World's Largest Mall,
World's Tallest Hotel and the
World's Biggest Debt....
Way to go Dubai...

nimitz benedicto   November 30th, 2009 2:34 pm ET

only ppl with big money get worried.It's silly 2 thnk we small fish r affected.

Get real. assuming Dubai debt is solved.

Will it make your pay bigger???

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