Real extent of the Duabi debt fiasco
 

IMF serves up its own estimates on debts of Dubai

http://www.thenational.ae/apps/pbcs....ate=columnists

Assorted highlights include :

"...IMF claims that Dubai Inc debt amounts to $109bn..."

"The IMF says authorities have assured it that the VAT will be in place in just two years"

"The IMF claims that Dubai is considering a capital-gains tax on property"

"This uncertainty is reflected in the cost of insuring debt. Dubai is still considered one of the world’s riskiest borrowers, riskier than even Greece or Iceland. And Abu Dhabi, thanks to its commitment to Dubai, is considered riskier than Qatar."

Crystalises some of the reasons why we were not getting paid. The AD government had to call in the IMF to determine the true extent of how deep the sh*t is in Dubai.

Re: Real extent of the Duabi debt fiasco
 

Well, not really.... the IMF have been beating on at the UAE for ages.

Re: Real extent of the Duabi debt fiasco
 

Wasnt aware of that. Its interesting to read something that resembles a considered viewpoint, with real numbers, and not the rubbish that comes out of Mo's mouthpiece (aka the Gulf News).

Re: Real extent of the Duabi debt fiasco
 

To be fair, the IMF may not have been specifically monitoring the debt - but they have been lobbying for a VAT system for ages.

A VAT system forces high quality book keeping throughout the value chain... one reason why it will be ages before it makes it here (especially given the cash nature of the economy)

The IMF watch all economies - they monitored and lobbied the UK for a while regarding the housing boom... they were ignored, the rest is history.

I love the capital gains tax idea... I wonder if you will be allowed capital losses to offset gains!

Re: Real extent of the Duabi debt fiasco
 

I did wonder how they hoped to implement that within two years. I couldn't imagine how they would possibly recover the GST/VAT from the little Asian store keepers.

Re: Real extent of the Duabi debt fiasco
 

exactly, especially when the guy has three levels of pricing depending on the colour of your skin!

and all those cash transactions... is prostitution a 'value added' service?

Re: Real extent of the Duabi debt fiasco
 

I used to run my own company in the UK, I had accountants and did VAT returns. I know what it means - I now work for a 200+ person company here that would meltdown if they had to do the same accounting / reporting that was required in the UK.

I honestly can not see VAT happening in the UAE, at least not in the same way that I experienced in the UK.... as mentioned before, maybe if there was a minimum earnings threshold otherwise it's never going to happen...

Re: Real extent of the Duabi debt fiasco
 

agreed I cant see it happening as it would cause almost every accounts dept to melt down, 2nd i cant see it because it would require that accurate records were kept and then how would the owners siphon off money left right and centre

Re: Real extent of the Duabi debt fiasco
 

Greece VAT system??

Re: Real extent of the Duabi debt fiasco
 

Isn't 40% of the Greek economy done "in the black"?

Re: Real extent of the Duabi debt fiasco
 

:)
Fakelaki is the keyword - no business without it......
Not that it is unknown is this part of the world, but I am sure it will bloom even more when everyone has to pay VAT.

Re: Real extent of the Duabi debt fiasco
 

Analysts estimate Dubai's debt at USD 170B. Sheikh Mo should not travel outside UAE as he might be held in any airport outside the country just like what the Arab banks doing with the expats who owe them money. ;)