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How does the latest dubai news affect the individual?

How does the latest dubai news affect the individual?

Old Nov 27th 2009, 3:16 pm
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Default How does the latest dubai news affect the individual?

OK...so the news that Dubai is effectively defaulting on debts isn't so much of a surprise....it's just the fact that it's now been made more or less a reality.

I have always known that most don't keep savings in bank accounts here - they keep them offshore. I never did this as the interest rate was so cr.ap and AED interest rates were slightly better. I wanted to wait until the USD got some strength before sending home (where it would hopefully be finally safe).

I did this in early march of this year when the USD gained so much.
However, last month i bought all these savings back to AED as the NZD was so strong again and now they are in a dubai bank account. That account is paying 4%, USD accounts pay 0%

I get the feeling that now, more than ever, you shouldn't have a dime more than you need for the month saved here regardless of interests rates offered.

Are Dubai based banks in danger of folding?
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Old Nov 27th 2009, 3:50 pm
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Default Re: How does the latest dubai news affect the individual?

Originally Posted by Jeeper View Post
OK...so the news that Dubai is effectively defaulting on debts isn't so much of a surprise....it's just the fact that it's now been made more or less a reality.

I have always known that most don't keep savings in bank accounts here - they keep them offshore. I never did this as the interest rate was so cr.ap and AED interest rates were slightly better. I wanted to wait until the USD got some strength before sending home (where it would hopefully be finally safe).

I did this in early march of this year when the USD gained so much.
However, last month i bought all these savings back to AED as the NZD was so strong again and now they are in a dubai bank account. That account is paying 4%, USD accounts pay 0%

I get the feeling that now, more than ever, you shouldn't have a dime more than you need for the month saved here regardless of interests rates offered.

Are Dubai based banks in danger of folding?
NEVER EVER keep any dirhams onshore. In fact, never hold dirhams.

If the currency peg was any good they wouldn't have to offer a 4% spread over the USD to keep people to hold it onshore.
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Old Nov 27th 2009, 3:58 pm
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Default Re: How does the latest dubai news affect the individual?

EmiratesMillhouse is right in principle.

Remember that if you do transfer your money out of the country it will go to a bank which may not actually be as safe as an Arab Bank.

When I left Kuwait I left a lot of money in Gulf Bank and sent some to BBi and Royal Bank of Scotland. Gulf Bank did not fail but the others did.

Managing exchange rate risk is of course a different matter from bank default risk and needs attention.

By the way - for those of you who have not been abroad for a full tax year and feel they may have to return to the UK - be careful with transfers and read HMRC-6 on the revenue website
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Old Nov 27th 2009, 8:33 pm
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Default Re: How does the latest dubai news affect the individual?

Originally Posted by EmiratesMillhouse View Post
NEVER EVER keep any dirhams onshore. In fact, never hold dirhams.

If the currency peg was any good they wouldn't have to offer a 4% spread over the USD to keep people to hold it onshore.
Spot on...

N.
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Old Nov 27th 2009, 9:27 pm
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Default Re: How does the latest dubai news affect the individual?

Originally Posted by Jeeper View Post

Are Dubai based banks in danger of folding?
Depends which bank. I wouldn't put any money in the smaller banks - RAKBANK, NBF...etc. And again very short term 1-3 month deposits until you can wire it out. ADCB, NBAD...AbDab banks are fine.
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Old Nov 28th 2009, 1:06 am
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Default Re: How does the latest dubai news affect the individual?

Originally Posted by IndieG View Post
Depends which bank. I wouldn't put any money in the smaller banks - RAKBANK, NBF...etc. And again very short term 1-3 month deposits until you can wire it out. ADCB, NBAD...AbDab banks are fine.
Mashreq?

Anyway - first working day after eid - it's outta here.
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Old Nov 28th 2009, 2:21 am
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Default Re: How does the latest dubai news affect the individual?

Originally Posted by Jeeper View Post
Mashreq?

Anyway - first working day after eid - it's outta here.
I've never trusted Mashreq before. I wouldn't trust them with a fil.
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Old Nov 28th 2009, 8:10 am
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Default Re: How does the latest dubai news affect the individual?

Originally Posted by IndieG View Post
I've never trusted Mashreq before. I wouldn't trust them with a fil.
They've actually been very good. 60billion times better than HSBC.
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Old Nov 28th 2009, 6:06 pm
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Default Re: How does the latest dubai news affect the individual?

Originally Posted by Jeeper View Post
Mashreq?

Anyway - first working day after eid - it's outta here.
Doubtful, by monday accounts will likely be frozen to prevent massive runs on UAE banks.
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Old Nov 30th 2009, 7:20 pm
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Default Re: How does the latest dubai news affect the individual?

Originally Posted by TA5 View Post
Doubtful, by monday accounts will likely be frozen to prevent massive runs on UAE banks.
National Bank of Dubai now called Emirates National Bank of Dubai [email protected] 21/11- like a namechange is salvation......

Any bets on how low the US Dollar will go or what price gold this time tomorrow?
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Old Nov 30th 2009, 11:15 pm
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Default Re: How does the latest dubai news affect the individual?

Originally Posted by Eva View Post
National Bank of Dubai now called Emirates National Bank of Dubai [email protected] 21/11- like a namechange is salvation......

Any bets on how low the US Dollar will go or what price gold this time tomorrow?
Think the name was already on the cards since 2008, they were just waiting for their systems to get integrated.

Did you see the Govt has now distanced itself from DW and is washing its hands off from all its debts.
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Old Dec 1st 2009, 3:05 am
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Default Re: How does the latest dubai news affect the individual?

Originally Posted by IndieG View Post
Think the name was already on the cards since 2008, they were just waiting for their systems to get integrated.

Did you see the Govt has now distanced itself from DW and is washing its hands off from all its debts.
No doubt about it Sheik Mo is a very clever man, and/or been well advised, its not in essence his debt!
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Old Dec 1st 2009, 3:40 am
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Default Re: How does the latest dubai news affect the individual?

Originally Posted by IndieG View Post
Think the name was already on the cards since 2008, they were just waiting for their systems to get integrated.

Did you see the Govt has now distanced itself from DW and is washing its hands off from all its debts.
yes they are saying it isn't owned by the Government.
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Old Dec 1st 2009, 3:59 am
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Default Re: How does the latest dubai news affect the individual?

Originally Posted by IndieG View Post
Think the name was already on the cards since 2008, they were just waiting for their systems to get integrated.
Big marketing push this month though(sorry last month now,where did 2009 go???)
Did you see the Govt has now distanced itself from DW and is washing its hands off from all its debts.
Originally Posted by rowell View Post
No doubt about it Sheik Mo is a very clever man, and/or been well advised, its not in essence his debt!
It's the RBS,HSBC etc investors who will probably carry the debt-
too dirty a word for any HRH to be associated with of course.
One of the knock on effects imho will be that the mention of Dubai will leave a bad taste in the mouth and a reluctance to get involved in its resurrection.....

A change in Residency laws could generate some revenue however this will not sit well with the drive to revert to a more traditional/ Islamic lifestyle.
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Old Dec 1st 2009, 7:04 am
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Default Re: How does the latest dubai news affect the individual?

funny isnt it. When they wanted to borrow money it was all owned by his nibs and the government but now that that money has to actually be paid back nobody knows **** all about it. BS of a world class degree

Last edited by shiva; Dec 1st 2009 at 7:08 am.
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