Dubai Crisis Sends Shockwaves Though The Financial World
Posted by Neil Payne on November 27th, 2009The Dubai financial crisis continued to send shares and commodities falling around the world this morning, despite efforts by the emirate’s ruling family to calm the panic.
Shares were down again across Europe, although there was an air of calm in London following yesterday’s plunge. This came after a bout of heavy selling in Asia.
Today, the mood in the City is that traders are trying to catch their breath following the shock on Wednesday when Dubai World – the government-owned conglomerate that has led the dramatic growth in the emirate – asked to defer repaying some debts for six months.
Building Work Unfinished Due To Crisis In Dubai
Sheikh Ahmed bin Saeed al Maktoum, the uncle of Dubai’s ruler Sheikh Mohammed bin Rashid al Maktoum, attempted to calm the situation last night.
“Our intervention in Dubai World was carefully planned and reflects its specific financial position,” he said in a statement.
“The government is spearheading the restructuring of this commercial operation in the full knowledge of how the markets would react. We understand the concerns of the market and the creditors in particular. However, we have had to intervene because of the need to take decisive action to address its particular debt burden.”
It is still unclear whether Dubai will default on some of its estimated $80bn (£48.8bn) debts, which would be a major blow to the banking sector, or be bailed out by the United Arab Emirates.
Read More>The Guardian
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