GrecoRomano

http://www.nytimes.com/2009/11/26/bu...ef=global-home

I will recommend to cover your arses, ladies and gents.

Chris79

Screw you Dubai lot, I'm in Abu Dhabi and we are considerably more richer than you

TBH I'm wondering how long it will be before Abu Dhabi gets hit as well.

Inselaffen

will this bring a different opinion on Big Mo's rule?
building a country with money he hasnt got

klaus3974

This is going to hurt.

For me it means at least another year without bonus...

Millhouse

Well this is hardly a surprise.

GrecoRomano

No way! They give YOU bonuses? AHAHAHAHAHAHAHAHAHAHAH

GrecoRomano

It is a surprise, in a way, for a couple of reasons: it's an open game, with numbers (USD 80 B) and dates (another six months, so mark May 25th 2010 for your, ehm, "visa run") and for the fact that it reached the cover page (well, the home page at least) of the New York Times. I don't think that a turning back will be possible, nah. How's Jebel Ali doing? That could be the first to go...

soukie

I wonder what impact this will have on Abu Dhabi? Seems like construction will be slowed here too.
http://www.building.co.uk/story.asp?...de=3154021&c=0

GrecoRomano

Interesting: maybe they're planning to use all of those empty building in Dubai... which, I guess, will be up for sale for a quite reasonable fare, quite reasonable one
Just guessing. Keep an eye on the cars' plates. When they'll change again, you will know for sure who's the boss in charge, ehehe.

Millhouse

Well for me, it's sort of good news... I really hope Jebel Ali or some of the other ports that DP own come up for sale. I'd love to buy 'em...

Millhouse

This is a really interesting thought process... by limiting the construction work they are hoping to draw a line under rent falls (or potentially result in a boost to rents) in AD.

I wonder if they have considered the unintended consequence that could be redundancies as a result of a reduced level of construction, and therefore less demand... and hence rent falls.

The latter would be great ... get rid of all the idiots that frequent places like Captains or that awful place the Village at the One.

GrecoRomano

Have a few quid to spare, mate? Anybody knows how's the traffic going in JA?

GrecoRomano

OOOOPS!
http://news.bbc.co.uk/2/hi/business/8381258.stm

Fait vos jeux, madames et monsieurs! Fait vos jeux!

Eva

Agreed.
Hieroglyphics on the wall by now.........

captainflack

Interesting that the consensus view before this was the Dubai would meet its obligations, largely because:

1. They'd publicly said as much for the last month or two
2. Sheikh Mo had strongly implied AD would bail Dubai out pretty much however deep the hole was

It seems this has not happened. I imagine AD probably demanded too high a price and Dubai just could not swallow its pride enough to accept it. Probably they wanted anything of value in return and active control of Dubai govt. In the end they are in the driving seat, no one else would lend Dubai money because no one else has the power to get it back.

Unless Dubai back pedals on this (we've seen this happen before many times) and ends up agreeing to take it up the backside from AD, then Dubai is going to have a huge financial crisis because it simply does not have enough revenue now to fund servicing its debts or even just continuing running stuff. Already DEWA has supposedly doubled leccy bills.

If Dubai tries to bring in taxes, then I can see a wave more people leaving, and the economy nosedives even more.

They really have managed to screw themselves big time. I hope some of them can still remember how to pitch a tent and ride a camel, because they might be needing those skills sooner than they think.