Dubai says Dubai World is on its own

Dubai says Dubai World is on its own

www.msnbc.msn.com

DUBAI, United Arab Emirates - The Dubai government disclaimed responsibility for the debts of Dubai World on Monday, dealing a blow to creditors' assumptions that the Arab emirate would guarantee the conglomerate's liabilities.

"Creditors need to take part of the responsibility for their decision to lend to the companies," said Abdulrahman al-Saleh, director general of Dubai's department of finance. "They think Dubai World is part of the government, which is not correct."

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Related News Links:
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Related AboveTopSecret.com Discussion Threads:
Britain must not bail out Dubai
UAE to back banks amid Dubai meltdown
Citibank’s $8 billion loan to Dubai with your money!

Even though the Dubai's government has pushed, invested, and had members of it's Royal family facilitate all of these deals they state that they are not responsible for the current credit crisis surrounding it. And by responsible I mean they refuse to pay the tab. Investors were under the impression that this was both a government endeavor and a private one. Could this be the straw that breaks that camels back within world economics?

www.msnbc.msn.com
(visit the link for the full news article)

reply to post by badmoviefan


Unfortunately Dubai is not in debt as such, they are correct.
Alot of the blame goes to banks and investors.
Bank of Scotland is in deep deep trouble.
And citibank used alot of bailout/stimulus money and sent it to dubai.

It's business people are in debt, not the country as such.

there is no concept of bankruptcy. If you get into debt and you can't pay, you go to prison.

As soon as you quit your job in Dubai, your employer has to inform your bank. If you have any outstanding debts that aren't covered by your savings, then all your accounts are frozen, and you are forbidden to leave the country.

www.independent.co.uk...

Read the above article, it's crazyyyy
I never knew this about Dubai
I always thought it would be great to go there and maybe even do business.

Boy was I wrong!

Ah Ha, sensible Arabs....
Dubai, UAE evidently do not see the corporate enterprise Dubai World as'Too Big To Fail'...

i guess they seen all the crisis fiasco the USA Fed/Treas had with AIG and the others like GM, Freddie & Fannie, & they weren't going to get blindsided by a threat of financial system collapse & martial law
if a TARP wasn't set up in their Kingdom.


good for them

Originally posted by St Udio


Ah Ha, sensible Arabs....
Dubai, UAE evidently do not see the corporate enterprise Dubai World as'Too Big To Fail'...

i guess they seen all the crisis fiasco the USA Fed/Treas had with AIG and the others like GM, Freddie & Fannie, & they weren't going to get blindsided by a threat of financial system collapse & martial law
if a TARP wasn't set up in their Kingdom.


good for them

Beat me to the punch. If we only let the crime syndicate fail we would not be in this fracking mess.

We all know who runs our government by the very actions of our government in this, our darkest hour.

Thanks Churchill.

reply to post by ModernAcademia


HI, I thought you might enjoy reading these two articles as well. Seems there is an abundance of workers fleeing Dubai, and abandoning their Mercedes in the airport.

Note the dates on the articles. To me, this reeks of something of an attempted coverup until it could just not be covered up anymore.

Also, there was an article linked on Drudgereport that stated they had carefully timed this information coming to light, and had planned it, so there was some manipulation of the information that is obvious.

I have been folllowing the Dubai story for a while, since I became intrigued with the Palm Islands and all the construction etc.

One of the reasons Dubai began all of this is because they were running out of oil, and were aiming to become the Tourism capitol of the world. Their aim was also at the most rich and famous in the world.

After the economic collapse, I suspected things would surely take a turn for the worse, as the hotels can range from 30k a night, and the homes on the islands in the multi-million dollars range.

With the current state of things right now, it was doomed, but only if they had had the foresight to see it coming. Now, they have to reap what they have sown.

As the royalty was directly involved in all of these schemes, it is very hard to understand how the government could not be involved.

Rather interesting to watch! It is also interesting to see what effect this is having on the global markets as well as our own.

business.timesonline.co.uk...

Driven down by debt, Dubai expats give new meaning to long-stay car park
From The Times February 5, 2009
For many expatriate workers in Dubai it was the ultimate symbol of their tax-free wealth: a luxurious car that few could have afforded on the money they earned at home.

Now, faced with crippling debts as a result of their high living and Dubai’s fading fortunes, many expatriates are abandoning their cars at the airport and fleeing home rather than risk jail for defaulting on loans.

Police have found more than 3,000 cars outside Dubai’s international airport in recent months. Most of the cars – four-wheel drives, saloons and “a few” Mercedes – had keys left in the ignition.

Some had used-to-the-limit credit cards in the glove box. Others had notes of apology attached to the windscreen.

www.autoblog.com...

Feb 18th 2009 at 10:58AM

You had to know it was going to end. Dubai's storied boom is starting to falter as the worldwide economic woes catch up with the nation's real estate and financial services-fueled good times. Abandoned cars are beginning to pile up at Dubai International Airport as overextended expatriates flee. Dubai throws debtors in the pokey, and if you lose your job, they yank your visa; two good reasons to drive to the airport and leave your maxed out credit cards on the passenger seat with an "I'm sorry" note. 3,000 cars are reportedly stockpiled at the airport so far, and with reports of 1,500 visas a day being cancelled, there may be a lot of dusty, cut rate luxury cars available for closeout prices.

Good for them...but we are gonna end up with the bill... Who's gonna save the western banks in trouble because of this? UK and US taxpayers! Again... What a surprise! NOT.

LET THE BANKS FAIL. FARK THEM.

Let the little non-corrupt ones take over!

And abolish the PRIVATE FEDERAL RESERVE!

Do you think it is possible that the Crown Prince of Dubai planned this all along? Bulid the biggest, most unquie technological city possible as quick as he could without paying for it all upfront and then default on all of the debt when the time was right.

Sure his company, Dubai World, would lose all its money and all its assets, but now there is one of the greatest new cities in the world in his country. And the Crown Prince isn't liable, his company is.

The city is bulit, the banks will repo every buliding and sell them cheaper than originally planned for. The banks are the ones losing money. The city of Dubai is winner becuase now it exists as one of the greatest cities in the world. Even if the Crown Prince doesn't retain control of the city, he still owns the land and government.

It seems like he really extorted the international banking system.

[edit on 30-11-2009 by tooo many pills]

reply to post by tooo many pills


I sure can agree with your insights, it would seem thats exactly what he did, and this way he retains his monies, too.

Very interesting thoughts!

This is a whole lot of unnecessary panic as we are already well into a jobless recovery! My understanding is that a jobless recovery means we will all make lots of money without having to be bothered with having jobs!

We will be able to not only afford to travel thanks to the jobless recovery but will have time to travel because according to the government we no longer need jobs to recover! That Obama sure is swell, I haven’t quite figured out yet just how and when we will be paid without traditional jobs but I am sure one of his 666 czars are hard at work on that.

Flush with cash and no responsibilities we will be able to enjoy picking up these beautiful unique one of a kind homes in the World at Dubai at fire sale prices!

We sure are lucky! In just one short year Obama has turned the failed world economy around and even made it possible for us not to work anymore!

He sure has my vote too come reelection time which we will all have plenty of time to cast since we have no jobs. Thankfully thanks to the expert and wise leadership in Washington we won’t need them! U.S.A. we’re number 1!


[edit on 30/11/09 by ProtoplasmicTraveler]

If i recal Dick Cheney owned real estate in UAE and Haliburton moved they're headquarters there.

I wonder how this mess would have effected the US if UAE were to of been sold the port here?

Originally posted by ProtoplasmicTraveler
This is a whole lot of unnecessary panic as we are already well into a jobless recovery! My understanding is that a jobless recovery means we will all make lots of money without having to be bothered with having jobs!

We will be able to not only afford to travel thanks to the jobless recovery but will have time to travel because according to the government we no longer need jobs to recover! That Obama sure is swell, I haven’t quite figured out yet just how and when we will be paid without traditional jobs but I am sure one of is 666 czars are hard at work on that.

Flush with cash and no responsibilities we will be able to enjoy picking up these beautiful unique one of a kind homes in the World at Dubai at fire sale prices!

We sure are lucky! In just one short year Obama has turned the failed world economy around and even made it possible for us not to work anymore!

He sure has my vote too come reelection time which we will all have plenty of time to cast since we have no jobs. Thankfully thanks to the expert and wise leadership in Washington we won’t need them! U.S.A. we’re number 1!

How did you manage to make this about Obama?

He inherited this mess.

I am sure any republican president would be doing exactly the samething. Since they are all the same.

[edit on 30-11-2009 by tooo many pills]

[edit on 30-11-2009 by tooo many pills]

reply to post by tooo many pills

I am sure any republican president would be doing excatly the samething. Since they are all the same.

There has never been a President that didn't inheret a mess for pity's sake.

A Republican isn't currently President, and the President represents the entirety of the American people and not just one party. Many Americans do not belong to a political party.

Staying in the here and now is always a nice thing since that is where our problems are in need of being confronted. Taking responsibility for the problems it's your job to solve is always a good idea if you want respect and to keep your job.

Looking to make excuses for a lack of performance that's just plain weakness no matter how you vote or don't come election day!

Originally posted by tooo many pills
Do you think it is possible that the Crown Prince of Dubai planned this all along?

worthy points
However that would imply that the prince believed that the entire planet is filled with the dumbest investors and bankers on earth.

And he would be able to fool them all with the blink of an eye
And that all developers would be in it as well, meaning the debtors.

that's kinda like blaming all the homeowners that got their homes foreclosed thinking that they would later on get bailed out and keep the homes for free.

Seems to me like the Prince did his utmost best to an extreme extent to ensure that THIS EXACT event would NOT happen with the no-bankruptcy laws he has in place.

The question would in fact be, out of all regions on earth how could this happen with this region..... with these laws in place?

This may have more to do with Gordon Brown than the Prince of Dubai.

Bank of England governor Mervyn King has revealed for the first time that in October 2008 the Bank had lent Halifax Bank of Scotland (HBOS) and the Royal Bank of Scotland (RBS) £62 billion.
www.wsws.org...

Lloyds shareholders were gulled into a merger that ended up nearly destroying their bank without ever being told that their new partner, HBOS, was being propped by secret emergency loans.

In essence, it was a 'brown envelope' style operation with vast sums of money ladled out to the banks without a trace being seen in the budget documents. Nor were they disclosed in the published accounts of the Bank of England.

www.dailymail.co.uk...

Royal Bank of Scotland Group Plc was the biggest underwriter of Dubai World loans while HSBC Holdings Plc has the most at risk in the U.A.E., according to JPMorgan Chase & Co.
www.bloomberg.com...

It seems like Dubai is UK's Housing Bubble.

Obama used the housing crisis for nationalization and G. Brown will use Dubai.


People need to be looking at the Dubai crisis more closely.

[edit on 30-11-2009 by ModernAcademia]

Good points.

I agree, people should give the recent news about Dubai more thought.

As for why they chose the region of Dubai to bulid this city, I think it was meant to be the Arab world's Global city / Las Vegas like playground and tourist capital. It is situated in the Perisan Gulf between Saudia Arabia and Iran, two of the biggest and richiest middle eastern countries. It is also on the peninsula, which blocks entry to the P. Gulf and has some of the nicest beaches in the P. Gulf.

By why bulid the city so fast? I know they were running out of oil and the city was for their economic future, but a mass majority of Dubai sprang up this decade. Including all of their palm shaped islands, the world island, Burj buliding(x2 the size of empire state bulding), like half the worlds cranes were in Dubai working non-stop until now basically. All of that was based on tremendous sized loans from foreign companies banks.

It was a good investment at the time to give these huge loans becuase obviously they thought they could be paid back by such a rich and prosperious nation. But the banks were duped into letting it grow to fast and letting them increase their debt nonstop. That is why I think they must have known what they were doing. The crown prince had the cheap immigrant workers buliding the city day and night trying to get everything bulit as quick as possible.

Did they really think they Dubai would be able to pay off 4+ plus billion every quarter for the next how many years? Lifetime?

They probably could still make the payments, why did they all of a sudden ask to not pay till May of 2010? Will they seriously start paying again?