Archive for November, 2009

25/11 – Dubai World Bankrupt

The last working day in UAE was 25/11, for extended holidays connecting EID Aladha & National Day, at the close of wednesday The Dubai Government announced ‘RE-Structuring’ of its Financial Arm Dubai World. In US it is commonly known as filing chapter 11, in rest of the world the most common word is ‘BANKRUPTCY’.
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As commonly known the Dubai World is Owned by the Ruler of Dubai His Highness Sheikh Mohammed bin Rashid AlMaktoum. The financial stream was sovereign wealth fund of family of Maktoums, with His highness Sheikh Mohammed at the helms.

A sovereign wealth fund is a fancier way of referring to a government-owned and government-controlled investment mechanism.

In financial terms, a sovereign wealth fund takes cash accumulated from domestic and trade surpluses (especially those generated from oil sales), foreign currency trading and other cash-generating ventures (such as the privatization of state-owned enterprises) and invests it in stocks, bonds, real estate, commodities and other investment venues.

In simpler terms, government wealth funds are the play money of mostly nouveau-riche nations such as Middle Eastern oil exporters and the Asian Tigers of the Pacific Rim. The funds are rarely transparent.

On Wednesday, Dubai World announced that it could no longer make payments on its debt for at least the next six months. The news sent European and Asian markets into a swoon on Thursday. American markets followed today, though at this writing it looks like the 2% drop of the Dow in early trading is now closer to 1.3%.

Las Vegas City Centre Project of MGM & Dubai World

Las Vegas City Centre Project of MGM & Dubai World


Worse news for Dubai: Standard & Poor’s downgraded the credit rating of three of the emirate’s principal investment entities to BBB-minus, just-above junk status, one more to BBB-plus, and a fifth, Dubai Multi Commodities Centre Authority and Thor Asset Purchase (Cayman) Ltd at BB, or two notches into junk. All of this will make Dubai’s debt repayments that much steeper, especially on some $50 billion that those finance firms owe in the next three years.

Dubai was a carbon copy of Thailand’s disastrous foray as an ‘international financial center’ in the 1990s. Happily, the U.A.E. has oil. Thailand did not.”

The UAE has oil, yes. That is, Abu Dhabi does (92 billion barrels worth of reserves). Dubai does not. It barely has 4 billion. Oil production in Dubai has been plummeting. It relies on Abu Dhabi to bankroll its spending (the way the United States rely on China, Japan and the Social Security Trust Fund).

For most of this decade Dubai has been the Victoria Beckham of the Arab world–the biggest, glitziest, most heedless spender. It’s been the sort of place that invests $7.6 billion subway system few of its 1.6 million people are likely to use, the sort of place that builds artificial islands in the shape of palm trees, the sort of place that builds the world’s tallest skyscraper, the sort of place that sells designer seat-belts to encourage drivers to be safer in the very cars it wants them to trade in for a subway ride, and the sort of place where office buildings have been the Gulf’s most copious crop of the decade.

Dubai hasn’t limited its excesses to its corner of the United Arab Emirates. Through Dubai World, the Emirate’s investment arm, it partnered with MGM Mirage and invested in such projects as Las Vegas’ CityCenter, a 67-acre development that includes a 4,004-room hotel-casino, 2,400 high-rise residential condos, dining and entertainment venues and its own retail district. At $8.5 billion, it’s the most expensive privately financed construction project in the United States.

The Dubai subway has been running since September, albeit to empty quarters. A quarter of Dubai’s office space is vacant. Workers have taken salary cuts of up to 30%. The Emirati government is in debt to the tune of $80 billion to $120 billion. CityCenter? It’s “worth about half of what it cost MGM Mirage and Dubai World to build the massive Strip development,” the Las Vegas Review-Journal reported in October. lost half its value. MGM Mirage took a $1 billion write-down already, Dubai World ate a $348 million loss (so far).

“Investors have long expected (and will probably expect further) write-downs of the carrying value of its residential towers at CityCenter, especially after it reduced unit pricing by 30 percent or so,” the paper quoted BMO Capital Markets analyst Jeffrey Logsdon as saying in a note to clients. “We do not expect investors to have a negative reaction to this step.”

SAID ENOUGH, The Bubble Finally Bursted, exposing what is natural & real, from here on, starting March 2010 everything in Dubai will and slowly come to REALISTIC values, sustanance will be virtue of wise who can manage to pull through wisely upto 2012.

Eidal Adha Mabrook

To readers & contributers of this metblog heartiest greetings on EID al-Adha6_n May ALLAH (SWT) shower the blessings of holymonth and coming new year on all of US.

The ruling council & members

Shaikh Khalifa will be hosting a banquet in honour of the Rulers of emirates, crown princes, and deputy rulers on national day.

President Shaikh Khalifa Bin Zayed Al Nahyan will host a banquet at the Bateen Palace on the UAE National day in honor of Vice President and Prime Minister of UAE and Ruler of Dubai Shaikh Mohammad Bin Rashid Al Maktoum, Their Highnesses the UAE Supreme Council members and Rulers of emirates and the crown princes, and deputy rulers.

Attending will be Dr Shaikh Sultan Bin Mohammad Al Qasimi, UAE Supreme Council member and ruler of Sharjah, Shaikh Hamad Bin Mohammad Al Sharqi, UAE Supreme Council member and ruler of Fujairah, Shaikh Rashid Bin Ahmed Al Mualla, UAE Supreme Council member and ruler of Umm al-Qaiwain, and Shaikh Humaid Bin Rashid Al Nuaimi, UAE Supreme Council member and ruler of Ajman.

Also attending will be Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Dubai Crown Prince, Shaikh Hamdan Bin Rashid Al Maktoum, Dubai Deputy Ruler and Minister of Finance,

Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum, Dubai Deputy Ruler, Shaikh Sultan Bin Mohammad Bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah, Shaikh Saud Bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah,
Shaikh Mohammad Bin Hamad Bin Mohammad Al Sharqi, Crown Prince of Fujairah, Shaikh Rashid Bin Saud Bin Rashid Al Mualla, Crown Prince of Umm Al Qaiwain, Shaikh Ammar Bin Humaid Al Nuaimi, Crown Prince of Ajman

and Shaikh Abdullah Bin Rashid Al Mualla, Deputy Ruler of Umm Al Qaiwain.

President will receive them in the presence of Shaikh Sultan Bin Zayed Al Nahyan, General Shaikh Mohammad Bin Zayed Al Nahyan, crown prince of Abu Dhabi and deputy supreme commander of the UAE Armed Forces and Shaikh Hamdan Bin Zayed Al Nahyan, Ruler’s representative in the Western Region.

Shaikh Tahnoun Bin Mohammad Al Nahyan, the Ruler’s Representative in the Eastern Region, Shaikh Saif Bin Mohammad Al Nahyan, Shaikh Hazza Bin Zayed Al Nahyan, National Security Advisor, Lt. General Shaikh Saif Bin Zayed Al Nahyan, Deputy Prime Minister and Interior Minister,

Shaikh Ahmed Bin Zayed Al Nahyan, Chairman of the Board of Trustees of the Zayed Foundation for Charitable and Humanitarian Works, Shaikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, Shaikh Abdullah Bin Zayed Al Nahyan, Foreign Minister,

Shaikh Ahmed Bin Saeed Al Maktoum, Chairman of the Dubai Aviation Authority and President of the Emirates Airlines, Shaikh Ahmed Bin Mohammad Bin Rashid Al Maktoum, Chairman of the Mohammad Bin Rashid Al Maktoum Foundation,

Shaikh Majid Bin Mohammad Bin Rashid Al Maktoum, Chairman of Dubai Culture and Arts Foundation, Shaikh Mansour Bin Mohammad Bin Rashid Al Maktoum, HE Shaikh Sultan Bin Hamdan Al Nahyan, the President’s Advisor, Dr Shaikh Saeed Bin Mohammad Al Nahyan, HE Shaikh Ahmed Bin Hamed, the President’s Advisor, HE Shaikh Hamdan Bin Mubarak Al Nahyan, Minister of Public Works, HE Shaikh Ahmed Bin Saif Al Nahyan, HE Shaikh Sultan Bin Tahnoun Al Nahyan, Chairman of Abu Dhabi Tourism Authority, HE Mohammad Habroush Al Suwaidi, the President’s Advisor, HE Ahmed Juma Al Zaabi, Deputy Minister of Presidential Affairs

Eid Al Adha, National Day holidays

Eid Al Adha and the UAE National Day holidays will be from Nov 26 until Dec 3 for all ministries and other federal authorities and institutions.

The private sector will have a three-day holiday on November 26-28 for Eid Al Adha followed by National Day holiday on December 2.

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Safely said & done, everyone is looking forward to the last wroking day on Wednesday 25 Nov 09 and those who can afford to travel back home are helpless in finding NO seats on available flights. It would be crowded on roads & at holiday points all over UAE,. People must excercise extreme caution at roads.

Banking & Punishments

The banks all over the UAE are instructed by the Central Bank to clear the cheques the very same day., & there are no exceptions.

A bounced cheque is criminal offence punishable under UAE law 401. jail for period between 1 month to 8 years on discretion of Judge.

A post dated cheque (PDC) is to be certified by the bank means that bank will be holding the amount to certify it for processing at a later date.

Dubai Airshow 2009

From 15 to 19 November 2009 at Airport Expo Dubai Airshow 2009jahaz Opening on Nov 15 The Dubai airshow is for Industry visitors only. Many of the civilian and military aircrafts will be on display and demonstrations. Helicopters, Passanger aircrafts will be part of the show. Tune to TV Channel Dubai One if you desire to see the coverage live on the 15th morning. MORE

Candy Store

The largest candystore in Gulf is open at the Mall of Emirates :) – with a variety of approx 1500 candies in different shapes, flavors and colors the place is tempting i mean really TEMPTING not only for kids but for elders equally.Candylicious
it is known as Candylicious

UAE – Dubai GET The 2010 S Class

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The new 2010 Mercedes-Benz S-Class has been launched in Dubai by Gargash Enterprises, the Mercedes-Benz authorized agent in the emirate. Some of the innovative features of the new S-Class include attention assist-drowsiness detection system, adaptive high beam assist and night view assist with special pedestrian detection. It also incorporates the ‘splitview technology’, which enables the driver and front seat passenger to view different content on the same screen simultaneously. While the driver is using the map-based navigation system, the co-driver can watch a movie on DVD.
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Burj Dubai

Come January 04 2010, The WORLDS LARGEST man made concrete & steel structure will be opened for WORLD. The date will coincide (not by accident) with the date of accession to power of HH Sheikh Mohammed Ruler of Dubai & Prime Minister of UAE. The 160-plus storey structure is considered the world’s tallest building., under the banner of EMAAR. The leading realtor & developer under the flag ship company of Sheikh Mohammed’s ETA

The ICON of Dubai

The ICON of Dubai

The area around the Burj is known as Down Town Dubai, on the edge is Dubai Mall or Mall of Dubai housing the famous Dubai Aquarium.

Hazard at Almankhool road

The bush in picture is hazard for pedestrians, Mankhool Road Hazard

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