Dubai Defaults (1 Viewer)

[IrishZebra]

Whats sad about the whole thing is that a lot (and I mean a lot) of people from my home state earn their living there. When they lose their jobs, a lot of them are gonna return home where there aren't enough jobs.

did they actively seek training and employment during the boom years when prices were high and consumers were being abused???

If they did, paybacks a bitch

 

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[icemaη]

Nope. Most of them are unskilled workers or people such as electricians, plumbers and other construction workers who learned on the job. In Dubai (at least when I was growing up there), the workers no matter their qualification (or lack of it) always learned on the job. A civil engineer would be working as an IT support guy, a plumber as an electrician and so on. You got the job, if you knew anyone in the company you were applying in... I'm not sure how much of this have changed now...

About 10 years back, Dubai was a good place to live in. It was growing as necessary, people had jobs, prices were low and people had a good life in general. Then suddenly they decided to up the pace of development, something they couldn't sustain. And without oil money, they should have known that they would be buried in the long run. And now they are.

 

[IrishZebra]

Nope. Most of them are unskilled workers or people such as electricians, plumbers and other construction workers who learned on the job. In Dubai (at least when I was growing up there), the workers no matter their qualification (or lack of it) always learned on the job. A civil engineer would be working as an IT support guy, a plumber as an electrician and so on. You got the job, if you knew anyone in the company you were applying in... I'm not sure how much of this have changed now...

About 10 years back, Dubai was a good place to live in. It was growing as necessary, people had jobs, prices were low and people had a good life in general. Then suddenly they decided to up the pace of development, something they couldn't sustain. And without oil money, they should have known that they would be buried in the long run. And now they are.

So you've saying that they weren't the people that over-inflated their industry and screwed consumers with outragous prices and poor work??

I thought you said they were in construction.

 

[Bjerknes]

"Passing through en route to the World Cup in Japan and Korea were the England football team, and several players stopped off to sign up for £1 million properties on the artificial island, with Michael Owen, David James, Joe Cole, Andy Cole and Kieron Dyer, it was reported, joining Beckham on the beaches. Pitt and Angelina Jolie are also said to have bought homes."

http://business.timesonline.co.uk/tol/business/markets/the_gulf/article6932539.ece

I love it. Hope to see more fuckers eat their losses. :scarf:

 

[Bjerknes]

UAE markets seen 'limit down' on Monday open. It should be a bloodbath.

 

[GordoDeCentral]

This is particularly funny.

An economy based on slave labour going bankrupt. I mean... come on.

wouldnt automated production in the long run cost less and in the short outperform even slave labor?

 

[GordoDeCentral]

There are several reasons why slave labour isn't particularly good for an economy. But if you look at it, it's a pretty funny paradox.

not really, morally bankrupt does lead empirically to materially bankrupt.

on another note this is not really news as there were reports some 2 years ago the russians mainly, and chinese to a lesser extent, were getting more stake in dubai as other principalities refused to help out.

 

[GordoDeCentral]

That's simply not true.

what is the direct basis(indirect as well) of any revolution? profit doesnt survive political/social unrest

 

[GordoDeCentral]

You're assuming that moral bankrupcy automatically leads to political/social unrest. Reality proves otherwise on a daily basis.

on what time frame are we basing this on? anyhoos welcome back

 

[GordoDeCentral]

Well, let's face it. We don't really seem to care all that much about moral bankrupcy. Look at the European Union and the way they constantly influence the market by strengthening Southern Europe and thereby weakening Northern Africa. Or do we really think the only place in the world to grow legumes is Spain?

Sure, Dubai was a bit extreme and it was destined for financial bankrupcy, but your conclusion is a bit strong.

if by strong you mean one that looks at events in at least a 50 year window then yes. As for the legumes, isnt that the primary and original reason why the EU was created?

 

[GordoDeCentral]

It is. But would you call it moral?

the intention seems to be benefit by proximity, though thats been slightly dispelled by the turkish accession debacle. So I'm still on the fence on this one.

 

[icemaη]

Abu Dhabi gives Dubai $10bn to help pay debts

Dubai's government has announced it has been given a $10bn (£6.13bn) handout from United Arab Emirates neighbour Abu Dhabi to help it pay off its debts.

It will use $4.1bn (£2.5bn) of the money to bail out the government-owned investment company Dubai World.

The company's property development operation Nakheel needed the money to pay investors in an Islamic bond which was due to mature on Monday.

Dubai has been badly hit by the global downturn.

News of the payment boosted share markets in the United Arab Emirates. Dubai's main share index was 10% higher, while Abu Dhabi's rose more than 7%.

The news also helped the value of the euro and the pound. Both currencies have been unsettled in recent weeks by news of Dubai's debts.

But the head of Middle East government ratings at Standard and Poor's, Farouk Soussa, said the bail-out raised questions about government policy in Dubai.

"It's a positive in terms of the debt being repaid, it's a positive in terms of support from Abu Dhabi, but I believe the grey shadow cast over this is really the coherence of policy."

'Satisfy obligations'

The payment that was due on Monday was an Islamic - or sukuk - bond, designed to be compliant with Islamic law which prohibits interest payments.

There had been fears the Nakheel would not be able to pay off the bonds when they matured and analysts say Abu Dhabi's bailout came as a surprise.

Dubai's fellow emirate has helped its neighbour out before. Their relationship is close, as both are part of the seven-member UAE. Their ruling families are from the same tribe.

On 25 November, Dubai's government had said it would ask its creditors for a freeze on Dubai World's $26bn (£16bn) debt repayments.

In a statement on Monday the chairman of Dubai's Supreme Fiscal Committee Sheikh Ahmed bin Saaed al-Maktoum said: "The government of Abu Dhabi has agreed to fund $10bn to the Dubai Financial Support Fund that will be used to satisfy a series of upcoming obligations on Dubai World."

He added: "We are here today to reassure investors, financial and trade creditors, employees, and our citizens that our government will act at all times in accordance with market principles and internationally accepted business practices."

He also announced the implementation of new bankruptcy law.

"This law will be available should Dubai World and its subsidiaries be unable to achieve an acceptable restructuring of its remaining obligations," he said.

John Sfakianakis, the chief economist of Banque Saudi Fransi-Credit Agricole in Riyadh called the handout a "crucial and essential lifeline".

He told the Reuters news agency: "That should bring in a lot of confidence, basically Abu Dhabi is footing the bill.

"It will take time for the implications to unfold. I highly doubt this kind of money has no strings attached."

Fahd Iqbal, the Gulf region strategist for EFG-Hermes, said the latest development did not necessarily change the "longer-term outlook" and that his investment banking firm still had other concerns regarding the "hit in confidence" Dubai had experienced, Reuters reported.

http://news.bbc.co.uk/2/hi/business/8411215.stm

 

[Gandalf]

as a bloke from Abu Dhabi (the CAPITAL of the UAE) I was disappointed really by the bailout they announced today.. I mean, the greedy bastards in Dubai who are sucking every dime they can get from their people deserve to be punished..

things were fine a peaceful.. why on earth do you keep developing, building and spending when you know that you don't and can't have the money to keep it going.. to monitor it..?? why all this greed..?? they fucked up the city.. hell, they fucked up the demographic balance in all the country.. neighbouring cities were copycat-ing Dubai.. seriously, why the rush.. you could have done all this in a smooth and gradual way.. instead, they created a bubble out of nothing.. now it blew right in their asses..

unlike Abu Dhabi, who invest in LONG term, LOW risk strategies, Dubai invested in short term, high resk strategies..!! as you saw, you shall reap, fvckheads..

my heart goes to my fellow cousins in Dubai.. the people of Dubai are suffering and suffocating.. the traffic stress is enough by itself.. not to mention all the money sucking projects they've implemented.. like the traffic toll gates (SALIK), or the parking systems.. I mean, here is a way to hijack people's money.. instead of building a new outer bypass road, and make the people pay to use it, no, they build gates on the "actuall" streets in the middle of the city and let them pay every time they pass it..!! fvckin thieves..!!

THEY DESERVE IT..

look at the size of new developments in Dubai, look at what have they accomplished.. new cities have risen, new islands.. experts say there is no way they can get return in these investments.. then why the hell did u do it.. when your ROI is minus 3212234252..!! why would a sane person does this..!?!?!?

 

[Yamen]

My only wish for dubai is to keep the properties prices as affordable as they are.
Otheriwse, I wish the city / country and everybody on its land nothing but the best.

I don't want to go back to Sharjah traffic

 

[icemaη]

I hear from my friends and cousins that rent/lease has become much cheaper now?

 

[Yamen]

Indeed. After 10+ yrs of living in Sharjah and Ajman I finally managed to move to Dubai couple of months ago.

 

[IrishZebra]

A 3 bedroom house here used to cost >$500,000

People who got a 100% mortgage instead of renting

 

[Bjerknes]

Abu Dhabi are idiots for bailing them out.

 

[Ahmed]

Khalifa to the RESCUUUUUUUUUEEE!!!!


























again

 

[Martin]

Ahmed, how's the mood over there?