Goodbye Dubai
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No Debts will be paid.
I doubt Dubai can and will repay any debts.
Untitled Document
All over the UAE people are owed money by companies, developers and quasi government entities. Nothing can be done to claim the money. It is part of the business ethic to not pay until forced to. But who here can force a local to pay?
I have watched individuals and companies go under as they are not paid or given whatever they purchased. In many cases they had loans to buy materials or properties. As they buckle under the weight of those loans they default and are sent to jail. A great way to deal with people you owe something to!
It is sad as they hang on in hope not understanding or believing that this could happen. It is unheard of where they come from so they rely on the hope that they will wake up from their nightmare and reality as they know it, will return.
They cannot turn to the courts. The legal system is set up to protect the rich. If a company does something illegal to its customers, creditors etc. they each have to fight their own case. No-one says to the company "You broke the law before, and told to make good, so why are you back in court with the same complaint against you?". For this reason class action is prohibited. A company can rob 1000 people in exactly the same way and if 100 go to court and win their money back the thieves still get away with robbing 900. Good returns, good business and who cares what happens to the UAE reputation. Sadly the UAE leaders do not stop this as they use the same vehicles themselves. Businessmen first, Leaders second.
The press says very little. Local press are gagged from reporting the injustices that are all around. BBC, Sky, CNN are all after lucrative contracts in Abu Dhabi so say very little about the real rot.
Dubai is just the beginning. Abu Dhabi will go the same way too. Many have come to even more grief there. It has nothing to do with the money they have (or more correctly the world hopes they have!)
This is about the very same same systems of class, exploitation, lack of law, and general lack of development that caused wars and reform in Europe centuries ago.
Massive reform is needed for the UAE to survive. They must show the world they have changed and all are equal in the eyes of the law. They must show they have law to protect against systematic robbery or exploitation of the citizens and visitors alike.
The UAE is a 15th century trading post for the worlds nomads, most undesireable. It is awash with con-artists, fakes, the outlawed, the unqualified. They are here because the UAE is ideal for humanity's most unpleasant.
Operate at your peril. Do the deal and get out. Its going to be a while before this place resembles a 21st century country.
You may make money but after a stint here, you get out broke or rich. But the rich mostly leave without their soul.
Untitled Document
All over the UAE people are owed money by companies, developers and quasi government entities. Nothing can be done to claim the money. It is part of the business ethic to not pay until forced to. But who here can force a local to pay?
I have watched individuals and companies go under as they are not paid or given whatever they purchased. In many cases they had loans to buy materials or properties. As they buckle under the weight of those loans they default and are sent to jail. A great way to deal with people you owe something to!
It is sad as they hang on in hope not understanding or believing that this could happen. It is unheard of where they come from so they rely on the hope that they will wake up from their nightmare and reality as they know it, will return.
They cannot turn to the courts. The legal system is set up to protect the rich. If a company does something illegal to its customers, creditors etc. they each have to fight their own case. No-one says to the company "You broke the law before, and told to make good, so why are you back in court with the same complaint against you?". For this reason class action is prohibited. A company can rob 1000 people in exactly the same way and if 100 go to court and win their money back the thieves still get away with robbing 900. Good returns, good business and who cares what happens to the UAE reputation. Sadly the UAE leaders do not stop this as they use the same vehicles themselves. Businessmen first, Leaders second.
The press says very little. Local press are gagged from reporting the injustices that are all around. BBC, Sky, CNN are all after lucrative contracts in Abu Dhabi so say very little about the real rot.
Dubai is just the beginning. Abu Dhabi will go the same way too. Many have come to even more grief there. It has nothing to do with the money they have (or more correctly the world hopes they have!)
This is about the very same same systems of class, exploitation, lack of law, and general lack of development that caused wars and reform in Europe centuries ago.
Massive reform is needed for the UAE to survive. They must show the world they have changed and all are equal in the eyes of the law. They must show they have law to protect against systematic robbery or exploitation of the citizens and visitors alike.
The UAE is a 15th century trading post for the worlds nomads, most undesireable. It is awash with con-artists, fakes, the outlawed, the unqualified. They are here because the UAE is ideal for humanity's most unpleasant.
Operate at your peril. Do the deal and get out. Its going to be a while before this place resembles a 21st century country.
You may make money but after a stint here, you get out broke or rich. But the rich mostly leave without their soul.
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The government of Abu Dhabi and the Central Bank of the UAE has announced that it has agreed to provide $10 billion to the Dubai Financial Support Fund, allowing Dubai World to repay $4.1 billion of Islamic sukuk bonds that are due to be paid on Monday.
If you were one of those that bought Nakheels Sukuk last week, then congratulations on your 100% profit in less than 7 days - who's buying the beers then?
Oh - I found one...
HH Sheikh Maktoum Hasher Maktoum Al Maktoum, nephew of Dubai's ruler, tells Claire Ferris-Lay why reports of Dubai's debt have been much exaggerated.
While nearly all stock markets across the world were tumbling last week, HH Sheikh Maktoum Hasher Maktoum Al Maktoum was on the beach in the Maldives. News that state-backed Dubai World had asked to delay payment on its debt by six months didn't concern the nephew of Dubai's Ruler, HH Sheikh Mohammed bin Rashid Al Maktoum, in the least.
In fact, on the same day that Gulf markets opened for the first time following the four-day Eid break, Sheikh Maktoum, the CEO of the UAE-based conglomerate Al Fajer Group, was snapping up bonds for less than 50 percent of their value the previous week. He tells Arabian Business that he made a "significant investment" across three of the emirate's government bonds the first day Dubai's bourse opened following the news.
While nearly all stock markets across the world were tumbling last week, HH Sheikh Maktoum Hasher Maktoum Al Maktoum was on the beach in the Maldives. News that state-backed Dubai World had asked to delay payment on its debt by six months didn't concern the nephew of Dubai's Ruler, HH Sheikh Mohammed bin Rashid Al Maktoum, in the least.
In fact, on the same day that Gulf markets opened for the first time following the four-day Eid break, Sheikh Maktoum, the CEO of the UAE-based conglomerate Al Fajer Group, was snapping up bonds for less than 50 percent of their value the previous week. He tells Arabian Business that he made a "significant investment" across three of the emirate's government bonds the first day Dubai's bourse opened following the news.
You couldn't make it up
Last edited by Jet II; 14th Dec 2009 at 05:06.
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At what cost ?
AUH have extended a bailout of $10b to DXB, It will be interesting to learn what is the cost of this bail out to Shk Mo...........family silvers as guarantee ?
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the surprising and inventive middle east
A proud moment when state-sponsored terrorism was created by Iran, now we in UAE can add state-sponsored insider trading to the trophy case.
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the surprising and inventive middle east
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He may have made a quick return on some bonds like the hedge funds did but the world including these guys are still sitting on a pile of junk.
I see today's bail out by AD as a massive loss of face. The Westerm world should feel better for at least a day!
I see today's bail out by AD as a massive loss of face. The Westerm world should feel better for at least a day!
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Backing of the bonds
Well, confirmed, AUH owns 50%+ of EK due to the crisis. Shows the astute nature of AUH and waiting for the price to be right. What else behind closed doors, DUBAL? the ports? You honestly didn't think the neighbours to the south wouldnt come in with no backing and front up 20 bil, did you? The largest soverign wealth fund in the world didn't become so due to bad and risky investments.
It is interesting times we live in for sure.
CO
It is interesting times we live in for sure.
CO
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Has there ever been a more blatant example of insider trading? Amazing, but they will get away with it.
On another note, 10B$ is only ten percent of the 'estimated' debt obligations of Dubai and look what it took to get that amount of money secured by Abu Dhabi. It required massive negative publicity, stock markets taking a hit and for once, a hint from the authorities that Dubai was not exactly how they had portrayed it.
Money is leaving, instead of coming into Dubai. The bankers know it and they have been told to keep the issue from us common folk, in order to hopefully avoid a run on the banks in Dubai. They seriously fear that possibility, which should scare the hell out of all of us.
You ever get the feeling you are on a sinking ship, yet most of the passengers are happily drowning (no pun intended), their misgivings at the ship's bar?
EK will eventually take a hit too. EK's employees already have, with the continual erosion of our T&C's but there has also been the secret pillaging of EK's coffers to support Dubai. For months we were told on our weekly update email, that we were barely making a profit and then suddenly we had made 200M$ in the first half, which was announced just prior to DW's request for a debt extension and the resultant fallout.
At some point EK will have to be offered to the Lords of Money in AD, if we already haven't been. I just don't see any other outcome.
My denial has ceased finally, this place is in serious trouble and the latest announcement should not be a sign of positive and progressive action to alter the downturn, IT SHOULD BE a clear indication that things are going to get worse.
Hope I'm not the last rat to leave this sinking ship.
ps for WhiteKnight.... GO GEORGE GO!
On another note, 10B$ is only ten percent of the 'estimated' debt obligations of Dubai and look what it took to get that amount of money secured by Abu Dhabi. It required massive negative publicity, stock markets taking a hit and for once, a hint from the authorities that Dubai was not exactly how they had portrayed it.
Money is leaving, instead of coming into Dubai. The bankers know it and they have been told to keep the issue from us common folk, in order to hopefully avoid a run on the banks in Dubai. They seriously fear that possibility, which should scare the hell out of all of us.
You ever get the feeling you are on a sinking ship, yet most of the passengers are happily drowning (no pun intended), their misgivings at the ship's bar?
EK will eventually take a hit too. EK's employees already have, with the continual erosion of our T&C's but there has also been the secret pillaging of EK's coffers to support Dubai. For months we were told on our weekly update email, that we were barely making a profit and then suddenly we had made 200M$ in the first half, which was announced just prior to DW's request for a debt extension and the resultant fallout.
At some point EK will have to be offered to the Lords of Money in AD, if we already haven't been. I just don't see any other outcome.
My denial has ceased finally, this place is in serious trouble and the latest announcement should not be a sign of positive and progressive action to alter the downturn, IT SHOULD BE a clear indication that things are going to get worse.
Hope I'm not the last rat to leave this sinking ship.
ps for WhiteKnight.... GO GEORGE GO!
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just on the news in the UAE
A new middle east crisis erupted last night as Dubai Television was refused permission to broadcast 'The Flintstones'.
A spokesman for the channel said....
'A claim was made that people in Dubai would not understand the humour, but we have heard that people in - Abu Dhabi Do.'
A spokesman for the channel said....
'A claim was made that people in Dubai would not understand the humour, but we have heard that people in - Abu Dhabi Do.'
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The world biggest investment fund is big from its assets, not its cash.
Anyway who seriously thinks 70bn is the real amount? This could easily be covered by the neighbors, unless it's worse. Sheik Mo was with the Queen a couple of days before the "bad news" was released, what a coincidence.
Anyway who seriously thinks 70bn is the real amount? This could easily be covered by the neighbors, unless it's worse. Sheik Mo was with the Queen a couple of days before the "bad news" was released, what a coincidence.
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mensaboy
Now then don't taunt White Knight as he is liable to throw his toys out of his pram
As an aside we have not heard him boasting recently about his huge property gains ( on paper at least ) in Dubai. Wonder if he will update us all?
Now then don't taunt White Knight as he is liable to throw his toys out of his pram
As an aside we have not heard him boasting recently about his huge property gains ( on paper at least ) in Dubai. Wonder if he will update us all?
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FYI ..
Dubai Debt Management Announcements
HSBC is one of the world's strongest banks and is proud to have offered banking services in the Middle East for over a century. We remain fully committed to the development and prosperity of the Region, and to Dubai in particular. We are confident that the leadership of Dubai and the UAE will overcome the short-term challenges faced by the Emirate.
HSBC welcomes the recent Central Bank of the UAE announcement regarding the provision of extra liquidity to the banking sector, and applauds the timeliness and decisiveness of the action. This will ensure that ample liquidity remains in the market for Dubai and the UAE to continue to conduct business as usual.
In the meantime, we too remain open for business-as-usual. HSBC is one of the strongest banks in the world, and maintains ample liquidity. This is particularly true in the UAE: At the half year, the bank had US$15.9bn of customer loans and advances in the UAE, and US$19.3bn of customer deposits. Once again, HSBC’s usual prudent approach to banking is evident. These advances to the UAE represent 1.7 per cent of HSBC’s global customer loans and advances. A large proportion for a small country, but one that reflects the importance of the region to the bank, and the importance of HSBC to the country.
Dubai Debt Management Announcements
HSBC is one of the world's strongest banks and is proud to have offered banking services in the Middle East for over a century. We remain fully committed to the development and prosperity of the Region, and to Dubai in particular. We are confident that the leadership of Dubai and the UAE will overcome the short-term challenges faced by the Emirate.
HSBC welcomes the recent Central Bank of the UAE announcement regarding the provision of extra liquidity to the banking sector, and applauds the timeliness and decisiveness of the action. This will ensure that ample liquidity remains in the market for Dubai and the UAE to continue to conduct business as usual.
In the meantime, we too remain open for business-as-usual. HSBC is one of the strongest banks in the world, and maintains ample liquidity. This is particularly true in the UAE: At the half year, the bank had US$15.9bn of customer loans and advances in the UAE, and US$19.3bn of customer deposits. Once again, HSBC’s usual prudent approach to banking is evident. These advances to the UAE represent 1.7 per cent of HSBC’s global customer loans and advances. A large proportion for a small country, but one that reflects the importance of the region to the bank, and the importance of HSBC to the country.
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Gulf News Urges Reporters To Tone Down Dubai Debt Coverage
By Maria Abi-Habib
Of ZAWYA DOW JONES
DUBAI (Zawya Dow Jones)--Gulf News, a newspaper part-owned by a senior government minister in the United Arab Emirates, has told its journalists to avoid using the words "bailout" and "default" when writing about Dubai's debt crisis, according to an internal memo sent to staff and seen by Zawya Dow Jones.
Reporters for the paper, the largest English-language daily in the U.A.E., were also urged to steer clear of the phrase "debt crisis" and asked to "ensure the following politically correct terminology is used" - words such as "financial consolidation" and "fiscal support" - when describing the sheikdom's economic problems and the assistance it has received from Abu Dhabi, according to the note sent Dec. 14.
"This is a style guide," said Francis Matthew, the Dubai-based paper's editor-at-large when asked by Zawya Dow Jones about the memo. "We're trying to restrict people from using financially incorrect terms."
U.A.E. officials have criticized international press coverage of Dubai's debt crisis since the emirate surprised markets on Nov. 25, saying it needed to freeze $26 billion of debt owed by one of its largest government-owned groups, Dubai World. Abu Dhabi bailed out Dubai on Dec. 14 with $10 billion, which the government used partly to pay off an Islamic bond due on that day.
Dubai's finance chief, Abdulrahman Al Saleh, this month blamed the media for spreading "blind panic" about the emirate's financial woes following the standstill request that triggered a downgrade of many of its banks and government-owned companies.
The sheikdom, which closely monitors the media, has come under intense scrutiny as it struggles to contain the estimated $80 billion of debt, mostly racked up by its government-owned companies building speculative real estate and infrastructure projects.
The Sunday Times was ordered off shelves in the U.A.E. on Nov. 29 after the paper carried a double-page graphic illustrating Dubai's ruler, Sheik Mohammed bin Rashid al Maktoum, sinking in a sea of debt. Its sister publication, The Times, was censored in the U.A.E. on Dec. 5 for a story that described Sheik Mohammed as a "benign dictator" and criticized his management of the economy.
The Sunday Times and The Times are part of News International, a unit of News Corp., owner of Dow Jones & Co, publisher of this newswire.
Gulf News is published by Al Nisr Publishing, which is part-owned by the country's Minister of State for Financial Affairs, Obaid Humaid Al Tayer, who chairs the company. Abdulrahman Hassan Abdulhamid Al Rostamani and Jumaa Al Majid, two large merchant families in Dubai, are also part owners along with the Al Tayer Group, according to Zawya.com's corporate monitor service.
-By Maria Abi-Habib, Dow Jones Newswires; +97150-941 9737
By Maria Abi-Habib
Of ZAWYA DOW JONES
DUBAI (Zawya Dow Jones)--Gulf News, a newspaper part-owned by a senior government minister in the United Arab Emirates, has told its journalists to avoid using the words "bailout" and "default" when writing about Dubai's debt crisis, according to an internal memo sent to staff and seen by Zawya Dow Jones.
Reporters for the paper, the largest English-language daily in the U.A.E., were also urged to steer clear of the phrase "debt crisis" and asked to "ensure the following politically correct terminology is used" - words such as "financial consolidation" and "fiscal support" - when describing the sheikdom's economic problems and the assistance it has received from Abu Dhabi, according to the note sent Dec. 14.
"This is a style guide," said Francis Matthew, the Dubai-based paper's editor-at-large when asked by Zawya Dow Jones about the memo. "We're trying to restrict people from using financially incorrect terms."
U.A.E. officials have criticized international press coverage of Dubai's debt crisis since the emirate surprised markets on Nov. 25, saying it needed to freeze $26 billion of debt owed by one of its largest government-owned groups, Dubai World. Abu Dhabi bailed out Dubai on Dec. 14 with $10 billion, which the government used partly to pay off an Islamic bond due on that day.
Dubai's finance chief, Abdulrahman Al Saleh, this month blamed the media for spreading "blind panic" about the emirate's financial woes following the standstill request that triggered a downgrade of many of its banks and government-owned companies.
The sheikdom, which closely monitors the media, has come under intense scrutiny as it struggles to contain the estimated $80 billion of debt, mostly racked up by its government-owned companies building speculative real estate and infrastructure projects.
The Sunday Times was ordered off shelves in the U.A.E. on Nov. 29 after the paper carried a double-page graphic illustrating Dubai's ruler, Sheik Mohammed bin Rashid al Maktoum, sinking in a sea of debt. Its sister publication, The Times, was censored in the U.A.E. on Dec. 5 for a story that described Sheik Mohammed as a "benign dictator" and criticized his management of the economy.
The Sunday Times and The Times are part of News International, a unit of News Corp., owner of Dow Jones & Co, publisher of this newswire.
Gulf News is published by Al Nisr Publishing, which is part-owned by the country's Minister of State for Financial Affairs, Obaid Humaid Al Tayer, who chairs the company. Abdulrahman Hassan Abdulhamid Al Rostamani and Jumaa Al Majid, two large merchant families in Dubai, are also part owners along with the Al Tayer Group, according to Zawya.com's corporate monitor service.
-By Maria Abi-Habib, Dow Jones Newswires; +97150-941 9737
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is this PC stuff going too far
Is the PC stuff going too far:
I can understand the Flintstones being banned.
I suppose that the new buzz words will be: Fiscally Challenged, or similar.
Happy Christmas, (sorry happy working day).
glf
I can understand the Flintstones being banned.
I suppose that the new buzz words will be: Fiscally Challenged, or similar.
Happy Christmas, (sorry happy working day).
glf
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Are We in the 21st Century?
I went to the Persian Gulf State of UAE knowing that I would find lots of sand (which I could live with!)..lots of opportunities..to make money, new friends and new experiences. I had some idea as to the incompetence when it came to implementing the law. Likewise when it came to human rights issues. What I had no idea about was the locals' ability to twist and break the law..their passion for treating people like slaves!! This was pretty close to living in a state of lawlessness..I thought they were the masters of economy and wealth management, and hence the attraction of all foreign companies and expats with their experiences and knowledge in the various fields of technology..what happened in the real estate business has been very obvious and showed that it has really been an economic bubble. But I think the worst is yet to come. Other areas are also suffering. I have witnessed frightening scenes and heard frightening stories about their attempts for recovery where the financial issues were put before safety when it came to priorities in the private aviation business, and the owners interests before human rights. It all turned out to be a nightmare with events surely not taking place in the 21st century!
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I guess all incompetent UAE nationals should expatriate themselves like all the foreigners in UAE. Most of us (foreigners) wouldn't be here if we were competent enough to get what we expect in our own countries. There's no secret why all businesses are f**** up in this country when all "advisers", "consultants" and "phd holders" are only looking after short term personal benefits. Sure nationals have a big responsibility in giving us visas and positions we shouldn't have.
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Amazing
Most of us (foreigners) wouldn't be here if we were competent enough to get what we expect in our own countries.
There's no secret why all businesses are f**** up in this country when all "advisers", "consultants" and "phd holders" are only looking after short term personal benefits.
Sure nationals have a big responsibility in giving us visas and positions we shouldn't have.
I find your confidence in the locals groundless, and your implications regarding ALL expats terribly unfair..but for you to hold this opinion is amazing!
