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Old 26th Nov 2009, 21:22
  #39 (permalink)  
rascott3888
 
Join Date: Apr 2008
Location: Dubai
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Transparency

The easy answer to that Sir Donald is transparency.

Everyone knows that the US is neck deep in debt - and that China holds most of it. But they hold that as government debt. The trouble with Dubai's debt is that it is held by global banks - and they are in enough of a mess already.

What happened yesterday caught everyone in the markets by surprise. And it was done after markets close before an extended holiday - and with very little clarification. One look at the market reaction globally is a pretty fair indication of the level of concern.

The only positive is that there is a (belated) recognition of the problem - even though the local newspapers appear to be in denial.

What happens next is a mystery - but Dubai Inc presumably will need to raise cash - selling foreign assets may be preferable to selling domestic assets (eg EK). It might hasten a listing of EK - pure speculation.

Bests.
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