Posts Tagged ‘abu dhabi’

Bail-Out or Buy-Out

dubaist_

Abu Dhabi finally stepped-In, the efforts of Shaikh Mohammed Bin Rashid Al-Maktoum fruited.  His up & down daily marathon to the Royal Majlis in Abu Dhabi and expression aka acceptance of doomed pride finally got him the collective sympathy a financial boaster.

Many may not be aware, The ruler of Dubai Shaikh Mohammed is also Son-in-Law to the Late His Royal Highness Shaikh Zayed Bin Sultan Al-Nahyan The father of the Nation the symbol of unity & integrity for 7 emirates as Emirati.  

The In-laws stepped in to support the Brotherhood, the US$10 Billion injection have come as jump start for Dubai Financial cardiac arrest coma situation.

Oil-rich Abu Dhabi pumped $10 billion into its indebted neighbor Monday, sending stocks soaring while sparing Dubai and the rest of the Emirates federation the humiliation of an imminent default by one of the struggling Arab boomtown’s star companies.

Abu Dhabi, which controls the UAE’s presidency, has directly and indirectly provided Dubai with $25 billion over the past year, mostly by buying Dubai bonds. In all, Dubai’s known debts are roughly equal to its total economic output last year. The full extent of its liabilities is uncertain, however, with some analysts putting the total at $100 billion or more.

The aid package is key for Dubai, which despite its international celebrity has little of the oil wealth held by Abu Dhabi. Dubai’s ruler is the UAE’s vice president and prime minister.

Dubai created Dubai World — which has interests in seaports, real estate, tourism and retail — to diversify its economy and boost its international clout. Much of the growth was fueled by easy credit. As the bills came due, the emirate struggled to repay as its economy was battered by the global economic downturn.

Nakheel, a property developer and hotel operator best known for building manmade islands in the shape of palm trees and a map of the world off Dubai’s coast, was among those Dubai World companies that relied heavily on that easy money.

Plenty of questions remain, especially as Dubai works to salvage its reputation and the conglomerate tries to deal with the rest of its debts.

Seems that plenty has been offered by  Dubai as collateral :)   -as  Emirates Airline, Dubai World (in whole), the 2 symbols of Dubai identified globally.

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