Jeeper

It's the central bank guarantee I'm not comfortable with.
I don't trust these clowns no matter what they say.

My savings were held in AED 'on-shore' in Dubai the whole time i've lived here. Through those years people would say....send it offshore, don't leave large sums in banks here.
I was always a little worried about it but not enough to do anything about it. Sent some home in november last year with the rest going shortly.

Now.....when all is turning to custard.....are people really saying.....save with banks 'on-shore'???

This rate is 3-4% higher than the rate I was typically getting through those years.....but......how much has the risk increased in the last year or so?

I'm not going round in circles with authorities here trying to get my money back when they fold....no thanks.

I'll sacrifice the 3-4% for the peace of mind.
Nov deposit is getting 8% at home anyway, next batch will still get around 5-6%.....and I trust my gov much more than these turkeys.

Blue Cat

turn it into National Bonds?

IndieG

Are you worried that they would place exchange controls (and not let expats remit money out?) or are you worried about the credit risk. I have moved some deposits to RBS (from local banks). Deposits mature between May-Nov - think we should be ok until then.

IndieG

No way!!!

Blue Cat

why?

IndieG

will pm

Jeeper

Frankly - I think I got most concerned when Shiva mentioned ZAYED picking up a handful of sand saying "this is what they earn"....and after most slips through the fingers says "this is what they take away".

I'm just making sure I take a fistful.......put up with the shenanigans of this place and leave with nothing?!?!

Seriously though - I just want less and less ties with the place now. I don't know enough about the banking system here and credit risk / exchange pegs / controls / law changes / etc etc all I know is....i'm not leaving my savings in their hands....I simply don't trust the place now.

They would have to offer double digit interest rates before I consider it.

IndieG

Good point...hubby thinks the same after talking with locals e.g. his boss thinks that all these problems are because of expats and because "the foreigners are taking away all the profits out of Dubai"....to which my hubby very helpfully replied "capital will follow where there is safety and return"...lol

Jeeper

That's it though....exchange rate has improved at the same time as property has started declining and I think everyone's just cashing out.
There's going to be less and less cash here until some sort of breaking point.

I don't hear of many people bring cash INTO dubai these days?
It's all going out.

And as for locals saying it's the expats fault....well that's all part of the capitalism game isn't it? good times, bad times, swings and roundabouts? Think these guys just expected double digit growth forever. Clueless.

MacScot

..been hanging out with too many Scots of late ?

expat.brat

im interested in whats wrong with national bonds as well..

Blue Cat

main shareholders are property linked, but I thought they were a safe bet because of the Sharia thing they are linked too?

expat.brat

Sharia? by that you mean that they wont invest in risky investments?

Ive always thought sharia was just a fancy rearrangement of words that had the same end-result as non-sharia..

Blue Cat

http://www.nationalbonds.ae/eng/Imag...twaEnglish.pdf