Tuesday, March 16, 2010

DUBAI Another Wolrd

Burj-Dubai
For the past two years governments have spent close to US$12 trillion and central banks have held interest rates to near zero to end the financial crisis. Even so, as to be expected, most of the previous excesses were never quite worked off.
UAE
UAE and its neighbours
Dubai
Dubai is just a town at the north eastern part of UAE
In Dubai, residential real estate prices have dropped more than 50%. Across the UAE, some $450 billion of construction work had been scrapped.
Burj Dubai2
Dubai City at night
Recently, Dubai World, the UAE’s largest state-owned conglomerate, announced that it would impose a six-month standstill on debt repayments.
Dubai4
Dubai is not rich in oil. It borrowed heavily to fund its grand ambitions. Nakheel, a government-sponsored developer, used part of these borrowed funds to develop the Palm Islands and other spectacular land reclamation projects.
Dubai Bridge
Dubai is not rich in oil. It borrowed heavily to fund its grand ambitions. Nakheel, a government-sponsored developer, used part of these borrowed funds to develop the Palm Islands and other spectacular land reclamation projects.
Palm
Palm Islands
Hyatt3
Burj Al Arab Hotel
Dubai’s sovereign and state-controlled companies’ debts could reach $80 billion, in excess of its GDP.
Dubai Towers1
Moving Towers
Dubai World was technically not government-backed, but investors had perceived it to be so and acted accordingly.
Dubai Aquarium
Aquarium
Wall Street tells us that government debt is “risk-free.” Don’t you believe it. History is littered with sovereign defaults.
Dubai Opera House2
Dubai Opera House
Dubai’s oil-rich neighbours – Saudi Arabia, Kuwait, Qatar and Abu Dhabi – command two thirds of the world’s oil and 45% of gas reserves. Debts levels are very low and high oil prices have enabled them to accumulate more than $1 trillion in reserves.
However, it is always possible for oil to drop below $40 per barrel.
Dubai Skiing
Dubai Skiing
Dubai Sports City2
Dubai Sports Complex
Trump Hotel Dubai
Trump Tower, Dubai

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