UAE Fund & UAE Population
UAE has a estimated population of 1million. A soverign fund of $500billion is equivalent to $500,000 per person.
Most of this soverign fund would be invested in extremely low interest bonds with the likes of Japan or Germany.
What would you reckon is the average debt/person in UAE ?
Can you imagine any of the 7 Emirs thinking of touching this soverign fund to bail out Dubai, possibile, though i would say extremely difficult.
Another thing to bear in mind is the UAE currency that is locked to the $. However this converstion rate is within UAE. I have didly squirt knowledge of currency, however i believe if the spreads on CDS have increased then that would increase the amount of dirhams they would have to pay externally to get $1, surely it would be more than Dhs3.67. The intl currency market would have revalued this exchange rate, which again is heavily dependent on AUHs oil reserves.
If i was living in UAE the first thing i would do is convert my dirhams to dollars.