# WAKE UP! Dubai is in a big mess!



## Guest (Feb 20, 2009)

*A Gulf Over Debt Bailout Lies Between Two Divided Arab Emirates​*By ANDREW CRITCHLOW

Will oil-rich Abu Dhabi bail out neighbor Dubai, currently groaning under $70 billion of debt racked up by its government-owned companies? Don't count on it.
Abu Dhabi's decision last week to pump $4.4 billion into its own banks while offering no support to lenders in Dubai or other members of the United Arab Emirates may simply be brinkmanship among the sheiks. But the possibility Abu Dhabi will refuse to come to Dubai's aid, once seen as almost unthinkable, can no longer be ruled out.

That raises the prospect of a deeper debt crisis in Dubai. And it could even mean a fragmentation of the federation, now in its 38th year, if Abu Dhabi refuses to pump billions of dollars into the economies of poorer emirates like Dubai to prevent either a corporate default or severe downturn. The cost of insuring Dubai debt has rocketed to around 10 percentage points for five-year debt -- higher even than for Iceland.

Construction of new buildings in Dubai, United Arab Emirates. The global financial crisis has taken its toll in Dubai with construction slowing and many projects in the planning stage being canceled.

Dubai's economy is contracting after a 40% slump in property prices, leaving the emirate struggling to refinance $15 billion of debt this year, according to credit-rating company Moody's.

Without Abu Dhabi's help, it has little chance of doing so. Moody's says it is likely to downgrade a raft of state-owned companies "if a trend of selective treatment within the federation becomes discernible." And bankers say they won't extend new lines of credit to Dubai without cast-iron financial guarantees from Abu Dhabi.
Abu Dhabi is driving a hard bargain. Its demands may include the surrender of Dubai's autonomy and the loss of control over crown jewels such as Emirates Airline and Nakheel, builder of the emirate's palm-shaped islands.

That may be too much for Dubai's ruling Maktoum family to stomach -- partly because the rulers of the two sheikdoms are cousins. Also, Dubai contends it was a principle of the 1971 agreement to form the federation that Abu Dhabi would use its oil wealth to support the other emirates.

Abu Dhabi has its own economic worries, thanks to falling oil prices, which account for the majority of the emirate's export earnings. Its reserves have been depleted by the losses suffered on its foreign investments, such as the $7.5 billion Abu Dhabi pumped into Citigroup in 2007 just before its shares collapsed.
But neither Abu Dhabi nor Dubai can afford to allow this standoff to drag on. Default by a major Dubai-owned company would trigger a crisis of confidence that could cost the emirate its status as the pre-eminent center for business in the region.

Worse, it could pull on the fabric that binds the emirates together, destabilizing the entire region.

Write to Andrew Critchlow at [email protected] 
FEBRUARY 17, 2009
Don't Count on a Dubai Bailout - WSJ.com


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## irishxpat (Nov 17, 2008)

i know 2 banks doing well in the present climate
blood bank and sperm bank


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## xdude (Dec 8, 2008)

Dubai is going the Iceland way.. I hope it does not as got too much stakes involved..
but it would be foolish to keep ignoring the signs n trying to comfort oneself abt it being bailed out by AD.. 
but the way things r currently wth dubai not being able to refinance its debt, we might suddenly get a rude shock one day..


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## Andy Capp (Oct 5, 2008)

But non of the big semi government entities have to refinance any major debt until end of 2010. so there's no problem there, just yet.

Also Joey, just cos you're leaving/left doesn't mean that you have to disparage the country, it strikes me that you're acting like a petulant child that's had it's favourite toy taken off them....

I'm sure we could find many thousands of articles saying how deep the us is in the ****, but we don't. Scaremongering like you are doing is not big or clever.


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## bigdave (Oct 22, 2008)

Joey your my bro, but andy is right. You are acting fecking retarded.
Did you know the state you are moving to is going to have over 40 billion in debt this time next year? Did you know that they are suspending tax returns in cali just so they can give money to schools????? Did you know that almost every house that has a mortgage in cali is worth 50% less than what they owe on there mortgage? 4 bank systems have failed in california.. Dude cali is 100 fold worse off then Dubai and it will only get worse for them. But we arent ****ting on cali, we are giving you a seeya later sendoff, nice to know ya, be safe and prosper..

so grow up broski.. I dont know what made you hate Dubai so bad, but life goes on bro..

here take a look at the 10 pages of links to news from cali about there problems
DrudgeReportArchives.com 2009

And be careful over there. They dont even have money to house hardened criminals. They have to release 10's of thousands of murders, drug dealers, rapist, ect because they cant afford to house them. so cover your butthole and watch your wallet.


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## SFarrell (Jun 13, 2008)

Andy Capp said:


> But non of the big semi government entities have to refinance any major debt until end of 2010. so there's no problem there, just yet.
> 
> Also Joey, just cos you're leaving/left doesn't mean that you have to disparage the country, it strikes me that you're acting like a petulant child that's had it's favourite toy taken off them....
> 
> I'm sure we could find many thousands of articles saying how deep the us is in the ****, but we don't. Scaremongering like you are doing is not big or clever.


Andy, 

Totally agree with your comments. This is the second time Joey has posted something of this nature since announcing his imminent departure. Child yes, very insecure yes. He is simply trying to make his decision to leave look more like it is the right choice and will be better off in the US or Canada. 

There are still some people here prepared to stay and tough it out, And Joey your fooling yourself if you think you will be better off. "Out of the frying pan into the Pot" or should i say "wouldnt wanna be ya"


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## Andy Capp (Oct 5, 2008)

I quite agree, and I'm so confident of this country I've just set up a new company with the sponsorship of a Sheik!!!

Watch this space, but soon you'll see the fruits of my endeavours on every street in Dubai....


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## irishxpat (Nov 17, 2008)

Andy Capp said:


> I quite agree, and I'm so confident of this country I've just set up a new company with the sponsorship of a Sheik!!!
> 
> Watch this space, but soon you'll see the fruits of my endeavours on every street in Dubai....


oh yes i can see it now andy has a fruit shop on every corner get your lovely ripe melons here


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## Guest (Feb 21, 2009)

Andy Capp said:


> I quite agree, and I'm so confident of this country I've just set up a new company with the sponsorship of a Sheik!!!


Sir Andy, 

Just so that we're on the same page here - we're all talking about Dubai not Ajman, right sir?
-------------------

Failures in their home country seek Dubai as an alternative, statistic shows 73% of expats in the UAE are failures back in their home country...

_let the record show; those are my personal stats _

Let's make a bet, I say Dubai is totally finished - if I'm _*wrong *_well then I'm the biggest fool who's ever registered to this forum, if I'm _*right*_, then all of yous take a number and wait in line (including you bro "bigdave") and kiss my a-s-s 

cheeriossssss SIRRRRRRRRRRRRRRRRRRRRs!
-Joseph


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## irishxpat (Nov 17, 2008)

JoeyDee said:


> Sir Andy,
> 
> Just so that we're on the same page here - we're all talking about Dubai not Ajman, right sir?
> -------------------
> ...


pulls up chair for the ensuing battle ps life is what you make of it its better to have tried and failed than to have never tried at all


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## Guest (Feb 21, 2009)

irishxpat said:


> pulls up chair for the ensuing battle ps life is what you make of it its better to have tried and failed than to have never tried at all


Ahhh dude - I'm joking man... I go missing from the forum and you all forget my humor  im just taking a piss trying to fire up some people who never post to post!


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## Andy Capp (Oct 5, 2008)

In Dubai, office in Emirates Towers, and as irish says, at least i've tried....


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## irishxpat (Nov 17, 2008)

JoeyDee said:


> Ahhh dude - I'm joking man... I go missing from the forum and you all forget my humor  im just taking a piss trying to fire up some people who never post to post!


ok here goes im lighting your fire why are you leaving did you fail to make it ohhhh feck that was low


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## Guest (Feb 21, 2009)

irishxpat said:


> ok here goes im lighting your fire why are you leaving did you fail to make it ohhhh feck that was low


Nice try smart-ass


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## irishxpat (Nov 17, 2008)

joeydee said:


> nice try smart-ass :d


weeeeeeeellllllllllllll which is it


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## Andy Capp (Oct 5, 2008)

Oh and I've secured 5 year sole supplier contracts with Dubai, Sharjah and Abu Dhabi municipalities, on the second meeting with them, they love what i'm doing and totally bought into it.

try doing that anywhere else in the world? 

You can't.


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## irishxpat (Nov 17, 2008)

Andy Capp said:


> Oh and I've secured 5 year sole supplier contracts with Dubai, Sharjah and Abu Dhabi municipalities, on the second meeting with them, they love what i'm doing and totally bought into it.
> 
> try doing that anywhere else in the world?
> 
> You can't.


you go girlfreind go ricki go ricki go ricki sorry go andy go andy go andy


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## SFarrell (Jun 13, 2008)

irishxpat said:


> weeeeeeeellllllllllllll which is it


I suspect that leaving Dubai was not entirely his own decision, hence the bitterness towards it now.

How about this for a bet Joey, The place you are going to is in far more worse situation than Dubia.


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## irishxpat (Nov 17, 2008)

irishxpat said:


> weeeeeeeellllllllllllll which is it


cmon stand up and be counted or lay down and be mounted


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## bigdave (Oct 22, 2008)

Andy Capp said:


> I quite agree, and I'm so confident of this country I've just set up a new company with the sponsorship of a Sheik!!!
> 
> Watch this space, but soon you'll see the fruits of my endeavours on every street in Dubai....



congrats Michael. I guess that was all the hush hush stuff going on the other day huh? 

Joey, just cut your loses and be done bro. Dont burn the bridge aight!


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## Pasanada (Feb 5, 2008)

I do love watching you girls beat one another with your handbags!! 

Andy, you have told me a little of your deal and I'd like to publicly congratulate you!  xxxxx


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## bigdave (Oct 22, 2008)

I am not upset, and dont want to beat anyone with my handbag thank you very much.
I just have an opionion, and everyone is entitled to it! my opinion that is. lol


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## Pasanada (Feb 5, 2008)

Still bashing handbags at dawn in my book.... lol 

Of course, you have an opinion, doesn't mean we have to take it seriously.....*ducks*


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## mazdaRX8 (Jul 13, 2008)

Damn, I guess we got to trust the guy who promotes hollywood movies when it comes to dubai and its economic woes


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## DesertStranded (Oct 9, 2008)

irishxpat said:


> oh yes i can see it now andy has a fruit shop on every corner get your lovely ripe melons here


hehehe

I was thinking he meant streetwalkers but then I picked my mind up out of the gutter.


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## Hamish (Dec 8, 2008)

We have all seen these reports, and I have seen this particular article about 8 times now. I have seen just as many positive reports. 

It's clear you want to cling to the negative Joey because it'd be nice to justify your decision and ride out of dodge before the sh1t hits the fan.

Maybe post something original / we haven't seen before.


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## ACoz2000 (Sep 15, 2008)

Give me Uncertainty give me Doubt all before I start packing my bags and heading back to the fabulous climate of Wales.. Who cares about the credit crunch if you are not in debt... 

Get paid in Dirhams and enjoy the transfer of cash back to the UK in sterling I say, take what you can and repay the community with knowledge. 

If Dubai and Abu Dhabi do not cooperate for the better of the region I will take that ticket and kiss that fat ass, but be aware, you are talking crap and you knows it my lovely!

Take a chill pill and get that fat ass on a economy ticket out of here on the Award Winning Emirates Airline or the Fastest Growing Airline Etihad and kiss Dubai 'behind' people like you are best off removed for the better of the region, dont get you ass and elbow mixed up matey because from what you say it is very plausable! Myth Busted!


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## irishxpat (Nov 17, 2008)

ACoz2000 said:


> Give me Uncertainty give me Doubt all before I start packing my bags and heading back to the fabulous climate of Wales.. Who cares about the credit crunch if you are not in debt...
> 
> Get paid in Dirhams and enjoy the transfer of cash back to the UK in sterling I say, take what you can and repay the community with knowledge.
> 
> ...


how about get of your ass and make the best of a bad situation


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## bigdave (Oct 22, 2008)

I wish I was fat like joey. lol

irish, its off you muppet meat puppet.. this thread is getting old.


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## SFarrell (Jun 13, 2008)

bigdave said:


> I wish I was fat like joey. lol
> 
> irish, its off you muppet meat puppet.. this thread is getting old.


Yes, time to close out this thread, its getting a little boring.........besides Joey Dee has slumped off with his tail betwen his legs!!


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## irishxpat (Nov 17, 2008)

SFarrell said:


> Yes, time to close out this thread, its getting a little boring.........besides Joey Dee has slumped off with his tail betwen his legs!!


sneeked off thread sneeked of dubai


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## mayotom (Nov 8, 2008)

*any jobs*



Andy Capp said:


> Oh and I've secured 5 year sole supplier contracts with Dubai, Sharjah and Abu Dhabi municipalities, on the second meeting with them, they love what i'm doing and totally bought into it.
> .


Andy Good luck with the new venture, are you hiring??????


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## Hamish (Dec 8, 2008)

Hey Joey, WAKE UP!



FT, February 23 2009 

The United Arab Emirates is to lend Dubai $10bn (€7.8bn, £6.9bn) to ease the emirate's debt repayment schedule in an effort to rescue the struggling economy.

The UAE central bank subscribed to half of a $20bn five-year bond programme launched by the Dubai government yesterday, yielding 4 per cent.

Federal backing is designed to help restore confidence in the Dubai economy, which is reliant on real estate, tourism and trade, making it particularly exposed to the global credit crunch.

"Things have been getting more difficult for Dubai on a daily basis...they had to make the decision before it became too late," said an official in Abu Dhabi.

The Dubai government said yesterday: "This programme will secure the necessary funding for Dubai to meet its financial obligations and continue its development programme."

Government-owned Borse Dubai's $3.4bn refinancing went down to the wire last week, illustrating the grim state of credit markets and highlighting the sense of tapping a federal facility.

The UAE loan may ease the cost of insuring against a default, which in recent weeks saw five-year credit default swaps on Dubai's debt rising to levels similar to Iceland's.

Dubai, which maintains some autonomy within the federation, walked away from plans for a similar federal facility last November.

The federal government, located in the UAE capital of Abu Dhabi, has long been expected to help Dubai, which lacks oil resources but has built a vibrant, services-focused economy.

To date, the UAE government has made up to Dh120bn ($32.7bn, €25.5bn, £22.7bn) available to banks in all seven emirates and also agreed to rescue Dubai's two mortgage companies, Amlak and Tamweel.

But Abu Dhabi this month injected Dh16bn into its own banking sector, rather than supporting all financial institutions in the UAE, triggering a wave of concern over Dubai.

Borse Dubai last week refinanced the $3.8bn it borrowed to buy Scandinavian exchanges group OMX, but it faced challenges while raising the $2.5bn to help retire the debt.

Local banks at the 11th hour put in $1bn to the loan syndicate, and speculation rose that the federal government had contributed to the deal.

Bankers have since said that Borse Dubai's main shareholder, Investment Corporation of Dubai, the holding company for government assets, persuaded local banks to lend.

Federal money may help restore faith in Dubai's troubled real estate sector, where more than half the developments have been abandoned as financing dries up and demand disappears.

Property prices are in freefall, dropping on average by a quarter from the third to fourth quarters last year.


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## JunFan (May 20, 2008)

So sorry I missed this thread in the heat of battle, but it was fun reading your responses! BTW, Andy Capp- can I send you my CV?? LOL


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## irishxpat (Nov 17, 2008)

junfan said:


> so sorry i missed this thread in the heat of battle, but it was fun reading your responses! Btw, andy capp- can i send you my cv?? Lol


send it to me me and big dave are opening a gay night club in dubai


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## bigdave (Oct 22, 2008)

irishxpat said:


> send it to me me and big dave are opening a gay night club in dubai


why did you spill the beans man????????
be gay 24/7


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## irishxpat (Nov 17, 2008)

bigdave said:


> why did you spill the beans man????????
> be gay 24/7


cant open closet door fully ?


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## JunFan (May 20, 2008)

You could call it the Blue Oyster! LOL Personally I think a Lap Dancing Bar would go down a treat (not blokes dancing tho' Irish!!)


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## MarinaUK (Nov 16, 2008)

Wow

What an interesting thread!!

Having just moved to Dubai 5 months ago from a highly successful job and great social life in Europe, I find all your comments interesting.

We are in an unprecedented economic situation which hopefully will never be experienced again, certainly in our lifetimes.

The behaviour of individuals all over the world was based on risk and greed. We are all culpable as to what has happened and we are all responsible for pulling together to get the situation resolved.

Social responsibilty and accountability are concepts which, in my own naive way, I hope will come to the fore.

As to the situation in Dubai. As I have only been here for 5 months, please forgive my ignorance and naivety.

Although this is not the most comfortable, socially considerate or ethically agreeable country in the world, it is most definitely one of the most dynamic, energetic and truly amazing places I have ever been and as a 3 year ex pat I am determined to weather this storm and enjoy my toils once we reach steadier waters.

As one contributor said, better to have tried and failed than never tried. That is very much the ethic of Dubai and I fully admire the UAE for this attitude.

Yes there are rough edges here but in time and maturity, I am sure they will be adressed.

Good luck to all those leaving who I am sure have had the time of their lives and welcome and good luck to all those arriving.

Here endeth the sermon.

Bless you for reading.


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## Jumeriah Judy (Feb 25, 2009)

irishxpat said:


> you go girlfreind go ricki go ricki go ricki sorry go andy go andy go andy


Good One Andy - Got any jobs going? Not bitter,nor twisted but was "eliminated" & I want to work!


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## irishxpat (Nov 17, 2008)

and another thing P M A positive mental attitude so get of your arses and work hard


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## dash567 (Nov 5, 2008)

Pasanada said:


> Still bashing handbags at dawn in my book.... lol
> 
> Of course, you have an opinion, doesn't mean we have to take it seriously.....*ducks*



Who threw a shoe???


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## bigdave (Oct 22, 2008)

dash567 said:


> Who threw a shoe???



you disrespect my famiry... slings size 47 at your dome..


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## dash567 (Nov 5, 2008)

bigdave said:


> you disrespect my famiry... slings size 47 at your dome..


ouch!... but why did you have to go and turn japanese on me all sudden!??


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## confident ramesh (Feb 27, 2009)

Dear Andy

I may not fully agree with your view, I do agree that Dubai is in a deep trouble and as of now Government has not started taking any serious measures to rectify the same. But they have started with some 20 billion funds pumped in to the market. With the Globalisation and education among the yound uae nationals I think this country will defnitely come out of this. Keep up the confidence

R Ramesh


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