Dubai Defaults (1 Viewer)

Asma

Asma

Doctor Asma
#61
Oct 21, 2003
3,658
#61
I agree.It was a very stupid move from Dubai.However,AbuDhabi did the right thing eventually, they already bought most of the investments in Dubai so its more or less theirs now.

For the past few years, the construction boom in Dubai took us all by surprise.You guys should come and see all those new 5-star buildings all over Dubai , they're all empty ! I dont know what gave the impression that everyone would move to Dubai.This country doesnt have resources other than oil, and oil alone is not enough.Even new constructions that were going on have been stopped until they can get back on their feet, it is very devestating indeed.
 

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Ahmed

Ahmed

Principino
#66
Sep 3, 2006
47,928
#66
it's a lot slower than before, but we never got involved with these real estate "developers", thankfully...can't complain too much, especially seeing how so many other people have defaulted/gone bust
 
Fred

Fred

Senior Member
#67
Oct 2, 2003
41,113
#67
Gandalf said:
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..!?!?!?
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:tup:

yamensbs said:
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 :cry:
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Sharjah traffic :tdown:

icεmαή;2270769 said:
I hear from my friends and cousins that rent/lease has become much cheaper now?
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True. Especially in Dubai.
 

ReBeL

The Jackal
#74
Jan 14, 2005
22,871
#74
Today, Dubai ruler Al Maktum issued many new regulations related to finance and economy there. It seems he does not know what to do now...
 

ReBeL

The Jackal
#75
Jan 14, 2005
22,871
#75
Creditors put Dubai World debt up for sale


Bank creditors to Dubai World that are owed billions of dollars are trying to reduce their exposure to the debt-laden conglomerate by offering their loans for sale ahead of an expected restructuring of the company’s $22bn of debt.

Last week, debt traders told potential investors that there was a seller seeking to offload about $100m of loans.

This would be the first large trade in the $5.5bn loan facility at Dubai World’s parent, of which $2.1bn falls due for repayment in June, according to Bloomberg data.

Investors and traders say the debt could be sold at 70 per cent of face value.

It is not certain that the trade will take place. The potential seller’s identity has not been revealed.

It is believed other loans have been offered privately to potential investors.

“The sellers are mainly some of the smaller international banks . . . which are starting to get discouraged by the whole process,” a banker based in Dubai said.

“There’s a huge disconnect in price, and bids [at 50 per cent of face value] are being driven by the market’s view of the likely recovery value for Nakheel and the other Dubai World assets.”

Creditors, led by a six-strong committee including HSBC and RBS, met last month to hear Dubai World sketch plans for its restructuring after it was announced that developer Nakheel’s $4.1bn obligation on its sukuk, or Islamic bond, which fell due in December, was to be paid thanks to a $10bn bail-out loan from Abu Dhabi.

Bank creditors often choose to sell their loans at a discount in the secondary market in debt restructurings.

This can allow distressed debt funds to build positions in the debt in the hope of in*fluencing restructuring negotiations.

Dubai World is seeking to secure a standstill agreement to run until April.

http://www.ft.com/cms/s/0/efdbebca-0394-11df-a601-00144feabdc0.html
 
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