Dubai defaults

Dubai World Seeks to Delay Debt Payments as Default Risk Soars – Bloomberg.com

” Dubai World, with $59 billion of liabilities, is seeking to delay debt payments…Dubai accumulated $80 billion of debt by expanding in banking, real estate and transportation before credit markets seized up last year…Dubai’s Supreme Fiscal Committee hired Deloitte LLP to lead the restructuring of Dubai World debt”

This is the state owned entity…it appears that there is a high probability that the country will default.

“Sheikh Mohammed turned to Abu Dhabi, the capital of the U.A.E. and holder of the world’s sixth-largest crude oil reserves, in February for a $10 billion bailout. The central bank, headquartered in Abu Dhabi, bought all of the 4 percent, five-year securities that Dubai sold on Feb. 23″…so Dubai is at the mercy of it’s neighboring countries.

Update: http://cn.reuters.com/article/companyNewsEng/idCNGEE5AO13A20091125

Looks like default is a done deal:

“”Dubai World intends to ask all providers of financing to Dubai World and Nakheel to ‘standstill’ and extend maturities until at least 30 May 2010,” the government said in a statement…”Abu Dhabi has been supportive of Dubai, but it appears this support is not enough for Dubai to meet its obligations on time.””

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1 Comment »

  1. Hi – the posts here are great. Thanks for having them. I love reading on the web about things in Dubai! It’s such a magical place. I don’t have time to read all that you have here right now, I found this site when looking for something else on Ask.com, but I’ve bookmarked your homepage and will return soon to see the latest posts. My sister and I spent a few years in Dubai, and we still have many fond memories. Visit my site if you’d like to read more. Thanks again for your site – it is really well-done.

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