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Dubai: No lessons learned 15, December 2009

Posted by thegulfblog.com in The Emirates.
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There’s a peach of a post over at Suq Al Mal discussing an absurdly triumphal editorial in a Dubai newspaper.

One would have thought that recent events would have resulted in a bit of introspection and restrained behavior.  Unless of course one was familiar with the region.
Today’s Khaleej Newspaper (Dubai) has a lead article entitled “We Can Do It”. Here is the first paragraph.
“GLOBAL crisis or not, Dubai has done it again. It has once again shown the world, beyond doubt, its ability and willingness not only to meet its obligations but any challenge to its unrivalled status as the most dynamic global financial and trading hub in the Gulf region.”
I’m not sure precisely what Dubai has done.
As I understand things, the kindly Shaykh up the road has sent around US$10 billion to be used to settle Dubai’s debts.  And Dubai is mailing the check.   How that shows ability is beyond me.  And how living off the kindness of strangers beats back challenges to a postulated “unrivalled status” also escapes me.

Migrants the only losers in Dubai 8, December 2009

Posted by thegulfblog.com in The Emirates.
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As much as Dubai is suffering at the moment from its crippling credit crunch, one must never lose sight of the fact that Emiratees will be fine. They will not go without their Porches, Range Rovers or trips to the South of France. The ones that will be suffering the most will, as always, be the migrant workers from Asia and North Africa. There are already stories of tens of thousands being laid off. Do you think that there is any – any – chance whatsoever that these workers will receive their owed back-pay or end of contract gratuity or severance pay? None. Khaaalis.

This is the reason that people should be angry with Dubai. Not because some greedy bankers in London have lost (yet more) money nor that the get-rich quick bankers and accountants from Essex who went to Dubai for no tax, cheap booze, the tackiest of houses and sex on the beach have lost their jobs, but because of the devastating knock-on effect that this will have on remittances and dirt-poor families in India, Pakistan, Bangladesh, Egypt, the Philippines….

Hat tip: Abstract JK

Abu Dhabi bails out Dubai…again 25, November 2009

Posted by thegulfblog.com in The Emirates.
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Two Abu Dhabi banks have lent some $5 billion to Dubai which is by all accounts still struggling massively since its credit-crunch collapse. For this ‘investment’ Abu Dhabi have demands both large and small. For example, Abu Dhabi sought and gained a huge stake in Dubai’s flagship airline Emirates and also changed a bill-board in a prominent place in Dubai from a picture of Dubai’s ruler to a pointedly different message proclaiming ‘Long live our Emirates Union’ with a picture of UAE President Shiekh Khalifah bin Zayed Al Nayhan, just to rub it in.