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Saturday, 28 November 2009
Abu Dhabi to Dubai: Do I Know You?
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Abu Dhabi will probably come hat in hand to us, saying something about how it's not fair that they should have to pick up the tab for their profligate brethren and how we're all in the "global market" together and how bad news like this affects us all, etc., etc. 

ABU DHABI (Reuters) - Abu Dhabi, wealthy capital of the United Arab Emirates, will "pick and choose" how to assist debt-laden neighbor Dubai, a senior official said on Saturday, after fears of a Dubai default sent global markets reeling.

"We will look at Dubai's commitments and approach them on a case-by-case basis. It does not mean that Abu Dhabi will underwrite all of their debts," the official in the government of the emirate of Abu Dhabi told Reuters by phone.

Dubai's crisis exploded on Wednesday when the emirate, known for flashy lifestyles and the world's tallest building, said it would delay payment on debt issued by one of its flagship firms, angering investors and sending global markets sharply lower....

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Posted on 11/28/2009 8:42 PM by Rebecca Bynum
Comments
29 Nov 2009
Hugh Fitzgerald

There is a political aspect to this that is being overlooked. Of the "Emirates" in the United Arab Emirates, the only one with oil, and therefore the only one that truly counts, is Abu Dhabi. Dubai is merely a playground for fun-parched Arabs and others -- international celebrity dreck -- who can be inveigled to come through sweetheart deals, so as to attract others in the West, and provide the illusion that Dubai has universal appeal.

The Islamic Republic of Iran lays claim to seveal islands -- Greater Tunb, Lesser Tunb, and Musa -- that are also claimed by the U.A.E. At the same time, many of the investors in Dubai are Iranians, including many of those mullahs who have made out like gangbusters and want a place outside Iran, but not too far away, to invest their money.

In refusing to give full faith and credit -- what a preposterous idea, among the mutually meretricious Muslims of the Gulf -- to the debts of Dubai, those who run Abu Dhabi are also damaging the economic interests of Iranians, and also showing, hinting, that there is more of that to come, if the Iranians don't mind their geopolitical manners.

An aspect of this "Dubai debt crisis" worth keeping in mind.

 



29 Nov 2009
Alan R

 

 

             " Dubai: an emirate in crisis "

 

           http://www.telegraph.co.uk/finance/financetopics/financialcrisis/6678148/Dubai-an-emirate-in-crisis.html