kanwar.chhabra
Kanwar Singh
what will be the impact of dubai economy which is moving toward recession in india and other developing nations
Caught in deserted storm, impact of dubai economy in india and other countries
kanwar.chhabra
Kanwar Singh
Re: cought in deserted storm, impact of dubai economy in india and other countries
article on same topic
DUBAI DOLDRUMS
CAUGHT IN DESERTED STORM
DREAMS TURN TO DUST: BUT IMPACT ON REST OF WORLD TO BE LIMITED
The sands continue to shift below Dubai’s feet, sending ripples across world markets, but investors are keeping their faith in sturdier economies like India
TEAM ET
WORLD markets were on their way to regaining their recentlyacquired composure as fears that the knock-on effect of the financial crisis in Dubai would lead to a double-dip global recession abated.
In India, policymakers did not appear too concerned about the impact of Dubai’s troubles on the economy and the benchmark Sensex of the Bombay Stock Exchange pared early losses to close 1.2% lower.
Emerging markets, which have been outperforming over the past few months, bore the brunt of the sell-off, but major European stock indices rose on Friday. The Morgan Stanley Emerging Markets Index fell by 2.7% and the rupee, the Russian ruble and the South Korean won slid while the S&P 500 in the US recovered from opening 2.1% lower to trade 1.72% down at 12 am IST.
The sell-off in stocks, commodities and currencies was triggered after Dubai World, a government investment company with $59 billion in liabilities, sought on Wednesday to delay repayment of much of its debt even as Russia set final terms for settling the last of the Soviet Union’s trade debt obligations after its 1998 default.
The sell-off may be a much-needed correction after asset prices rallied substantially this year as central banks and governments opened the money supply tap to pull the world out of the worst recession since the 1930s.
“We’re bound to see a rise in risk aversion,” said Arnab Das of Roubini Global Economics, whose founder Nouriel Roubini predicts a double-dip recession where the economy, after recovering from the depths, contracts again as economic stimulus effects fade away.
“The Dubai situation signifies that although the major central banks around the world have stabilised the financial system, they can’t make all the excesses simply disappear. We still have to work out those balance-sheet stresses. The recovery is proceeding, but significant challenges still lie ahead.”
Mark Mobius, executive chairman of Templeton Asset Management, told Bloomberg News that the Dubai crisis may be the trigger to allow for the market to take a rest and pull back. “If Dubai has to default, that could start a wave of defaults in other areas,” he added.
European banks with exposure to the Middle East were badly hit, with HSBC Holdings falling 7.6% and Standard Chartered Bank crashing 7.5% on fears they may be holding a substantial portion of the debt owed by Dubai.
British banks have the most loans outstanding to the United Arab Emirates in Europe, constituting $49.5 billion of a total of $87.3 billion extended by the continent’s lenders to the Gulf country as of June 2009, Royal Bank of Scotland Group said in a research report on Friday, citing Bank for International Settlements.
The S&P GSCI index of 24 commodities fell as much as 4.2%, spot gold lost as much as 4.2% from its record highs of Thursday. RBI cautions against knee-jerk reactions
BUT policymakers and Indian companies, which have operations in the Emirate, believe the impact may not be much even as British football stars David Beckham, Michael Owen and Hollywood couple Brad Pitt-Angelina Jolie stare at losses from investing in Dubai’s Palm Jumeirah, the best-marketed property in the world in recent years.
The potential loss numbers pale in comparison to the $2.8 trillion in writedowns the International Monetary Fund estimates US and European lenders will have made between 2007 and 2010 as a result of the global credit crisis.
Reserve Bank of India governor D Subbarao cautioned against knee-jerk reactions while finance secretary Ashok Chawla was sanguine about the effect of the Dubai crisis on remittances from expat workers. “On Dubai alone, I want to say, that we should not react to instant news like this,” Mr Subbarao remarked. “One lesson of the crisis is that we must study the developments and I think we must measure the extent of the problem there and how it might impact India.”
Mr Chawla said remittances from expats didn’t suffer during the period when the global economic crisis was on and it is “somewhat unlikely” that it will now.
India has one of the largest populations working in the Middle East, especially Dubai. India’s exports to the UAE rose 53% last fiscal to $23.92 billion, but much of it was transit trade. Construction companies L&T, Punj Lloyd, engineering company Voltas, Bank of Baroda, ICICI Bank and a host of Indian companies with businesses in the Emirates recovered from the lows of the day after dispelling fears that their business is not intricately linked to Dubai World.
“There is no material non-India link exposure to Dubai corporates,” said ICICI Bank. “We do not have any exposure to Dubai,” said Punj Lloyd. But Indian companies where the Dubai government, or its associates have invested may face some uncertainties, said analysts.
Istithmar, the investment of the government of Dubai has a stake in low-cost carrier SpiceJet and DP World, which may get ring-fenced from the crisis, handles nearly 40% of the container traffic in India through various port, including the Jawaharlal Nehru Port Trust and in Chennai.
“Not aware of change in Dubai’s Istithmar investment strategy,” said SpiceJet.
Some believe that the crisis may be blown out of proportion since the numbers are insignificant compared with the recent global credit crisis.
“Simply the market is over-reacting to a corporate entity that is attempting to restructure its liabilities,” said Adrian Mowat, MD & chief Asian and Emerging Market Equity Strategist at JPMorgan based in Hong Kong. “The combination of limited information on the debt moratorium and thin trading volumes due to the Thanksgiving holiday amplified the correction. This is not the start of a wave of defaults.”
Also, the wealthy neighbourhood emirate Abu Dhabi may step in to save Dubai as it had done in the past.
“At the end of the day, people like us were aware that they were overspending, we were aware that the debts were huge, but we always felt that at the end of the day, Abu Dhabi will come to the rescue and things would be OK, even though the debt levels are so high,” said Mr Mobius.
article on same topic
DUBAI DOLDRUMS
CAUGHT IN DESERTED STORM
DREAMS TURN TO DUST: BUT IMPACT ON REST OF WORLD TO BE LIMITED
The sands continue to shift below Dubai’s feet, sending ripples across world markets, but investors are keeping their faith in sturdier economies like India
TEAM ET
WORLD markets were on their way to regaining their recentlyacquired composure as fears that the knock-on effect of the financial crisis in Dubai would lead to a double-dip global recession abated.
In India, policymakers did not appear too concerned about the impact of Dubai’s troubles on the economy and the benchmark Sensex of the Bombay Stock Exchange pared early losses to close 1.2% lower.
Emerging markets, which have been outperforming over the past few months, bore the brunt of the sell-off, but major European stock indices rose on Friday. The Morgan Stanley Emerging Markets Index fell by 2.7% and the rupee, the Russian ruble and the South Korean won slid while the S&P 500 in the US recovered from opening 2.1% lower to trade 1.72% down at 12 am IST.
The sell-off in stocks, commodities and currencies was triggered after Dubai World, a government investment company with $59 billion in liabilities, sought on Wednesday to delay repayment of much of its debt even as Russia set final terms for settling the last of the Soviet Union’s trade debt obligations after its 1998 default.
The sell-off may be a much-needed correction after asset prices rallied substantially this year as central banks and governments opened the money supply tap to pull the world out of the worst recession since the 1930s.
“We’re bound to see a rise in risk aversion,” said Arnab Das of Roubini Global Economics, whose founder Nouriel Roubini predicts a double-dip recession where the economy, after recovering from the depths, contracts again as economic stimulus effects fade away.
“The Dubai situation signifies that although the major central banks around the world have stabilised the financial system, they can’t make all the excesses simply disappear. We still have to work out those balance-sheet stresses. The recovery is proceeding, but significant challenges still lie ahead.”
Mark Mobius, executive chairman of Templeton Asset Management, told Bloomberg News that the Dubai crisis may be the trigger to allow for the market to take a rest and pull back. “If Dubai has to default, that could start a wave of defaults in other areas,” he added.
European banks with exposure to the Middle East were badly hit, with HSBC Holdings falling 7.6% and Standard Chartered Bank crashing 7.5% on fears they may be holding a substantial portion of the debt owed by Dubai.
British banks have the most loans outstanding to the United Arab Emirates in Europe, constituting $49.5 billion of a total of $87.3 billion extended by the continent’s lenders to the Gulf country as of June 2009, Royal Bank of Scotland Group said in a research report on Friday, citing Bank for International Settlements.
The S&P GSCI index of 24 commodities fell as much as 4.2%, spot gold lost as much as 4.2% from its record highs of Thursday. RBI cautions against knee-jerk reactions
BUT policymakers and Indian companies, which have operations in the Emirate, believe the impact may not be much even as British football stars David Beckham, Michael Owen and Hollywood couple Brad Pitt-Angelina Jolie stare at losses from investing in Dubai’s Palm Jumeirah, the best-marketed property in the world in recent years.
The potential loss numbers pale in comparison to the $2.8 trillion in writedowns the International Monetary Fund estimates US and European lenders will have made between 2007 and 2010 as a result of the global credit crisis.
Reserve Bank of India governor D Subbarao cautioned against knee-jerk reactions while finance secretary Ashok Chawla was sanguine about the effect of the Dubai crisis on remittances from expat workers. “On Dubai alone, I want to say, that we should not react to instant news like this,” Mr Subbarao remarked. “One lesson of the crisis is that we must study the developments and I think we must measure the extent of the problem there and how it might impact India.”
Mr Chawla said remittances from expats didn’t suffer during the period when the global economic crisis was on and it is “somewhat unlikely” that it will now.
India has one of the largest populations working in the Middle East, especially Dubai. India’s exports to the UAE rose 53% last fiscal to $23.92 billion, but much of it was transit trade. Construction companies L&T, Punj Lloyd, engineering company Voltas, Bank of Baroda, ICICI Bank and a host of Indian companies with businesses in the Emirates recovered from the lows of the day after dispelling fears that their business is not intricately linked to Dubai World.
“There is no material non-India link exposure to Dubai corporates,” said ICICI Bank. “We do not have any exposure to Dubai,” said Punj Lloyd. But Indian companies where the Dubai government, or its associates have invested may face some uncertainties, said analysts.
Istithmar, the investment of the government of Dubai has a stake in low-cost carrier SpiceJet and DP World, which may get ring-fenced from the crisis, handles nearly 40% of the container traffic in India through various port, including the Jawaharlal Nehru Port Trust and in Chennai.
“Not aware of change in Dubai’s Istithmar investment strategy,” said SpiceJet.
Some believe that the crisis may be blown out of proportion since the numbers are insignificant compared with the recent global credit crisis.
“Simply the market is over-reacting to a corporate entity that is attempting to restructure its liabilities,” said Adrian Mowat, MD & chief Asian and Emerging Market Equity Strategist at JPMorgan based in Hong Kong. “The combination of limited information on the debt moratorium and thin trading volumes due to the Thanksgiving holiday amplified the correction. This is not the start of a wave of defaults.”
Also, the wealthy neighbourhood emirate Abu Dhabi may step in to save Dubai as it had done in the past.
“At the end of the day, people like us were aware that they were overspending, we were aware that the debts were huge, but we always felt that at the end of the day, Abu Dhabi will come to the rescue and things would be OK, even though the debt levels are so high,” said Mr Mobius.
kanwar.chhabra
Kanwar Singh
Re: cought in deserted storm, impact of dubai economy in india and other countries
friends please share your views on the same topics which i highlighted above as per the referance or an artical which i posted .....
friends please share your views on the same topics which i highlighted above as per the referance or an artical which i posted .....
Re: cought in deserted storm, impact of dubai economy in india and other countries
As such the initial reports and speeches say that the linking to Dubai is less for an impact in India. However there are lot from South India who are working in Dubai area and if there is no rescue for Dubai and there are domestic problem it could definitely affect some industry in India . I would pick Real estate as the first victim .
As such the initial reports and speeches say that the linking to Dubai is less for an impact in India. However there are lot from South India who are working in Dubai area and if there is no rescue for Dubai and there are domestic problem it could definitely affect some industry in India . I would pick Real estate as the first victim .
S
shrey420
Guest
Re: cought in deserted storm, impact of dubai economy in india and other countries
AS FAR AS MY KNOWELDGE DERE "It's one thing if property prices or share prices come down. That will affect only one section of people. But how is it going to affect the living conditions, employment conditions, real economic activity in those countries where we are employed?" :SugarwareZ-290::SugarwareZ-290::SugarwareZ-290:NICE THREAD MY FRND KANWR BHAI KAISE HO
AS FAR AS MY KNOWELDGE DERE "It's one thing if property prices or share prices come down. That will affect only one section of people. But how is it going to affect the living conditions, employment conditions, real economic activity in those countries where we are employed?" :SugarwareZ-290::SugarwareZ-290::SugarwareZ-290:NICE THREAD MY FRND KANWR BHAI KAISE HO
S
shrey420
Guest
Re: cought in deserted storm, impact of dubai economy in india and other countries
AS FAR AS MY KNOWELDGE DERE "It's one thing if property prices or share prices come down. That will affect only one section of people. But how is it going to affect the living conditions, employment conditions, real economic activity in those countries where we are employed?" :SugarwareZ-290::SugarwareZ-290::SugarwareZ-290:NICE THREAD MY FRND KANWR BHAI KAISE HO
AS FAR AS MY KNOWELDGE DERE "It's one thing if property prices or share prices come down. That will affect only one section of people. But how is it going to affect the living conditions, employment conditions, real economic activity in those countries where we are employed?" :SugarwareZ-290::SugarwareZ-290::SugarwareZ-290:NICE THREAD MY FRND KANWR BHAI KAISE HO
S
shrey420
Guest
Re: cought in deserted storm, impact of dubai economy in india and other countries
BHAI CHERRY PLS CLICK THANKS BUTTON ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
BHAI CHERRY PLS CLICK THANKS BUTTON ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
Re: cought in deserted storm, impact of dubai economy in india and other countries
I hope the administrators keep an eye on debut many of them are just posting unnecessarily to increase their post...
ndia's Finance Minister Pranab Mukherjee also yesterday asserted that there is no need to press panic button. "The full impact of the Dubai debt crisis is yet to be assessed, but there is no need to press the panic button." Buttressing his point he had said "first of all, the amount is small and secondly, the exposure of our banking systems to the Dubai financial systems is limited."
Local Indian businessmen said it is too early to judge the impact on remittances, redundancies and other business activities.
Managing director of Xpertize United and a board member of the Indian Business Professional Council (IBPC) in Dubai Navin Kapoor said there would be hardly any impact on India.
"The exposure of Indian financial institutions to Dubai World is being assessed at this point in time but in my opinion it will have practically no impact on India," he said. "There is no reason to panic on this issue," he added.
HSBC’s CEO Middle East region Simon Cooper said, "I am confident that the leadership of Dubai and the UAE will overcome any short-term issues they face, which appear to have been somewhat sensationalised." HSBC has relations with the government of Dubai and its government-related entities.
"There are no redundancies happening nor will there be in the near future. The group, the city and the country as a whole is more than capable of handling this. The whole thing is a bit of an overreaction," said an analyst.
This acted as a catalyst for an "overdue correction" in equities and risk assets, said another one, adding that the crisis would be handled by the local Dubai authorities and situation would calm down.
However, John Sfakianakis, the chief economist of Banque Saudi Fransi – Credit Agricole Group, says concerns about the debt situation have rattled investor confidence. "In the short-term, investors will come down and begin to differentiate between good and bad bets in the region."
I hope the administrators keep an eye on debut many of them are just posting unnecessarily to increase their post...
ndia's Finance Minister Pranab Mukherjee also yesterday asserted that there is no need to press panic button. "The full impact of the Dubai debt crisis is yet to be assessed, but there is no need to press the panic button." Buttressing his point he had said "first of all, the amount is small and secondly, the exposure of our banking systems to the Dubai financial systems is limited."
Local Indian businessmen said it is too early to judge the impact on remittances, redundancies and other business activities.
Managing director of Xpertize United and a board member of the Indian Business Professional Council (IBPC) in Dubai Navin Kapoor said there would be hardly any impact on India.
"The exposure of Indian financial institutions to Dubai World is being assessed at this point in time but in my opinion it will have practically no impact on India," he said. "There is no reason to panic on this issue," he added.
HSBC’s CEO Middle East region Simon Cooper said, "I am confident that the leadership of Dubai and the UAE will overcome any short-term issues they face, which appear to have been somewhat sensationalised." HSBC has relations with the government of Dubai and its government-related entities.
"There are no redundancies happening nor will there be in the near future. The group, the city and the country as a whole is more than capable of handling this. The whole thing is a bit of an overreaction," said an analyst.
This acted as a catalyst for an "overdue correction" in equities and risk assets, said another one, adding that the crisis would be handled by the local Dubai authorities and situation would calm down.
However, John Sfakianakis, the chief economist of Banque Saudi Fransi – Credit Agricole Group, says concerns about the debt situation have rattled investor confidence. "In the short-term, investors will come down and begin to differentiate between good and bad bets in the region."
rj031086
Rohan Jain
Re: cought in deserted storm, impact of dubai economy in india and other countries
As of on India, dubai effect will be very less.
It wasnt unusual but was immature volatility that was seen in indian stock market post the dubai crisis. What i've learnt from the business papers is that Indian banks are very less exposed in dubai. There are only 11 banks (if m not wrong) in dubai which have exposed very little for the dubai projects.
So its not a big problem for India. Only thing is that our exports will be affected wid this crisis.
As far as others are concerned, mostly european banks have been severely affected by this crisis.
UK banks like standard chartered n HSBC thus fell more than 7% post the dubai crisis as they have large investments in dubai and its projects.
Indians dont need to worry as of now - RBI has also asked banks to consolidate their exposure in dubai after that only we can decide what will be future outcome of crisis on India.
As of on India, dubai effect will be very less.
It wasnt unusual but was immature volatility that was seen in indian stock market post the dubai crisis. What i've learnt from the business papers is that Indian banks are very less exposed in dubai. There are only 11 banks (if m not wrong) in dubai which have exposed very little for the dubai projects.
So its not a big problem for India. Only thing is that our exports will be affected wid this crisis.
As far as others are concerned, mostly european banks have been severely affected by this crisis.
UK banks like standard chartered n HSBC thus fell more than 7% post the dubai crisis as they have large investments in dubai and its projects.
Indians dont need to worry as of now - RBI has also asked banks to consolidate their exposure in dubai after that only we can decide what will be future outcome of crisis on India.
rounak_jain1985
Rounak Jain
Re: cought in deserted storm, impact of dubai economy in india and other countries
dubai spend so much in palm island .they spend so much in ski resort just to attract customer . dubai got lot of money to waste so this desert storm is for some time not for long. whole crude money is there dont worry it will come back.
dubai spend so much in palm island .they spend so much in ski resort just to attract customer . dubai got lot of money to waste so this desert storm is for some time not for long. whole crude money is there dont worry it will come back.
Re: cought in deserted storm, impact of dubai economy in india and other countries
World's tallest building Burj Dubai opens to public
UBAI: Blazing fireworks and dazzling lights marked the opening of the world's tallest tower, Burj Dubai, which the Gulf Emirates hopes will pep up its international image, shaken by debt woes.
The $1.5 billion structure, an "unprecedented" engineering marvel that was thrown open to the public today, was built with a major contribution from India, a vast labour force.
The steel and glass tower was opened by Dubai's ruler Sheikh Mohammad Bin Rashid al Maktoum, who also lifted the veil on a closely guarded secret of its final height.
"Emirates has made a mark on the world and Dubai has built something for the world that is built by human beings," Sheikh Mohammed said while announcing the tower open. The paratroopers then came down to greet onlookers.
The launch coincided with the fourth ascencion to the throne of Sheikh Mohammed bin Rashid Al Maktoum. The Burj Dubai Metro station also opened today to mark the launch.
Declaring that the tower is 818 metres (2,684 feet) high, he said the new building pips all its nearest rivals, including the 101-storey high Taipei Tower in Taiwan.
Sheikh Mohammad inaugurated the tower in a colourful ceremony featuring dazzling laser lights, fireworks display and a choreographed water display on the Dubai fountains which stretch for 275 metres at the foot of the tower.
The Dubai Burj's record seeking builders are also boasting of the highest occupied floor of any building in the world and today the needle-shaped tower ranks taller than north Dakota's Television mast.
World's tallest building Burj Dubai opens to public
UBAI: Blazing fireworks and dazzling lights marked the opening of the world's tallest tower, Burj Dubai, which the Gulf Emirates hopes will pep up its international image, shaken by debt woes.
The $1.5 billion structure, an "unprecedented" engineering marvel that was thrown open to the public today, was built with a major contribution from India, a vast labour force.
The steel and glass tower was opened by Dubai's ruler Sheikh Mohammad Bin Rashid al Maktoum, who also lifted the veil on a closely guarded secret of its final height.
"Emirates has made a mark on the world and Dubai has built something for the world that is built by human beings," Sheikh Mohammed said while announcing the tower open. The paratroopers then came down to greet onlookers.
The launch coincided with the fourth ascencion to the throne of Sheikh Mohammed bin Rashid Al Maktoum. The Burj Dubai Metro station also opened today to mark the launch.
Declaring that the tower is 818 metres (2,684 feet) high, he said the new building pips all its nearest rivals, including the 101-storey high Taipei Tower in Taiwan.
Sheikh Mohammad inaugurated the tower in a colourful ceremony featuring dazzling laser lights, fireworks display and a choreographed water display on the Dubai fountains which stretch for 275 metres at the foot of the tower.
The Dubai Burj's record seeking builders are also boasting of the highest occupied floor of any building in the world and today the needle-shaped tower ranks taller than north Dakota's Television mast.
Re: cought in deserted storm, impact of dubai economy in india and other countries
but the ppl there feel cheated as they are not given ownership... they sell houses and property on a 99 yr lease...its like ur not going to to own it.. coz, if u get it in ur name then u become a citizen there... their real estate market is collapsing.. the cost of living is really high.
but the ppl there feel cheated as they are not given ownership... they sell houses and property on a 99 yr lease...its like ur not going to to own it.. coz, if u get it in ur name then u become a citizen there... their real estate market is collapsing.. the cost of living is really high.
Re: cought in deserted storm, impact of dubai economy in india and other countries
Dubai shares rose for the second time this week, leading gains in Gulf markets, on signs the U.S. economy is recovering and as oil rose amid freezing weather in parts of the Northern hemisphere.
Emaar Properties PJSC, the developer of the world’s tallest tower, opened and renamed Burj Khalifa yesterday, added as much as 2.5 percent. Dubai Investments PJSC, an investor in real estate and dairy farms, headed for its biggest advance in three weeks. Dubai’s DFM General Index gained 1.1 percent to 1,837.2 at 11:40 a.m. in the emirate. The measure lost 2.6 percent yesterday.
U.S. stocks surged the most in almost two months yesterday and Asian stocks climbed after U.S. manufacturing expanded at the fastest pace in more than three years. Crude oil traded near a 14-month high as cold weather in the U.S., the largest energy consumer, and improving global economies bolstered the outlook for fuel demand. Oil traded at $81.75 a barrel. The Gulf region produces about 20 percent of the world’s oil.
“Buyers are lending support to all regional markets, primarily as a consequence of external influences; it’s been a good start to the year from the U.S., Asia and oil prices are firm,” Julian Bruce, director of equity sales at EFG-Hermes Holding SAE, the biggest publicly traded Arab investment bank, said today by e-mail. “There’s still some caution.”
Dubai’s Debt
Dubai, the second-biggest of seven states that make up the U.A.E., and its government-owned companies borrowed $80 billion to finance its transformation into a financial and tourist hub before credit markets froze. Dubai World, the state-owned holding company, said Dec. 1 it wants to alter terms on about $26 billion of debt.
Emaar rose 1.7 percent to 4.09 dirhams. The United Arab Emirate’s largest developer spent five years building the $1.5 billion Burj Khalifa, formerly known as Burj Dubai.
Dubai Investments added 4 percent, the biggest gain since Dec. 14, to 1.03 dirhams.
Abu Dhabi’s ADX General Index increased 0.8 percent, Oman’s Muscat Securities Market 30 Index advanced 0.9 percent, while Qatar’s Doha Securities Index 20 and Kuwait’s measure rose 0.6 percent. The Bahrain All Share Index lost 0.2 percent.
Dubai shares rose for the second time this week, leading gains in Gulf markets, on signs the U.S. economy is recovering and as oil rose amid freezing weather in parts of the Northern hemisphere.
Emaar Properties PJSC, the developer of the world’s tallest tower, opened and renamed Burj Khalifa yesterday, added as much as 2.5 percent. Dubai Investments PJSC, an investor in real estate and dairy farms, headed for its biggest advance in three weeks. Dubai’s DFM General Index gained 1.1 percent to 1,837.2 at 11:40 a.m. in the emirate. The measure lost 2.6 percent yesterday.
U.S. stocks surged the most in almost two months yesterday and Asian stocks climbed after U.S. manufacturing expanded at the fastest pace in more than three years. Crude oil traded near a 14-month high as cold weather in the U.S., the largest energy consumer, and improving global economies bolstered the outlook for fuel demand. Oil traded at $81.75 a barrel. The Gulf region produces about 20 percent of the world’s oil.
“Buyers are lending support to all regional markets, primarily as a consequence of external influences; it’s been a good start to the year from the U.S., Asia and oil prices are firm,” Julian Bruce, director of equity sales at EFG-Hermes Holding SAE, the biggest publicly traded Arab investment bank, said today by e-mail. “There’s still some caution.”
Dubai’s Debt
Dubai, the second-biggest of seven states that make up the U.A.E., and its government-owned companies borrowed $80 billion to finance its transformation into a financial and tourist hub before credit markets froze. Dubai World, the state-owned holding company, said Dec. 1 it wants to alter terms on about $26 billion of debt.
Emaar rose 1.7 percent to 4.09 dirhams. The United Arab Emirate’s largest developer spent five years building the $1.5 billion Burj Khalifa, formerly known as Burj Dubai.
Dubai Investments added 4 percent, the biggest gain since Dec. 14, to 1.03 dirhams.
Abu Dhabi’s ADX General Index increased 0.8 percent, Oman’s Muscat Securities Market 30 Index advanced 0.9 percent, while Qatar’s Doha Securities Index 20 and Kuwait’s measure rose 0.6 percent. The Bahrain All Share Index lost 0.2 percent.
Re: cought in deserted storm, impact of dubai economy in india and other countries
The problems in Dubai came as a bolt out of the blue given that the general perception was that Dubai was on the path to recovery. I was there only a few weeks ago visiting clients and the message from within Dubai was one of cautious recovery.
I believe that the problems will be contained and that it will be seen as a regional issue rather than a global one. Nonetheless, it does add to the worries about banking sector health in general. In particular, UK bank exposure is relatively high, suggesting more vulnerability of UK markets compared to elsewhere.
I don’t think Dubai’s problems will have a major impact on global recovery, but it does provide a strong reason not to be complacent. There is still a long road to recovery and as reflected in the events over the past few days there are still many stumbling blocks along the way.
The problems in Dubai came as a bolt out of the blue given that the general perception was that Dubai was on the path to recovery. I was there only a few weeks ago visiting clients and the message from within Dubai was one of cautious recovery.
I believe that the problems will be contained and that it will be seen as a regional issue rather than a global one. Nonetheless, it does add to the worries about banking sector health in general. In particular, UK bank exposure is relatively high, suggesting more vulnerability of UK markets compared to elsewhere.
I don’t think Dubai’s problems will have a major impact on global recovery, but it does provide a strong reason not to be complacent. There is still a long road to recovery and as reflected in the events over the past few days there are still many stumbling blocks along the way.
vikashgoplani
New member
Re: cought in deserted storm, impact of dubai economy in india and other countries
Finally we have seen that stimulus packages are more strong than dubai doldrums and economies of world have been resilient enough to face Dubai Crisis
Finally we have seen that stimulus packages are more strong than dubai doldrums and economies of world have been resilient enough to face Dubai Crisis