Dubai is not impervious to the world economic and financial storm, the Financial Times argues in a detailed analysis today. The report notes, 'One test of Dubai's financial stability will be its ability to refinance debt.' Two leading government companies have to repay debts of $10.8bn in 2008 and early 2009.
The pink 'un reckons that while a soft landing is predicted for much of the Gulf, the biggest risk is in ambitious Dubai. With little oil wealth of its own, Dubai has relied on debt to finance its diversification. Estimates by ratings agency Moody's say government-backed Dubai companies' leverage has risen to $50bn, exceeding 2006 gross domestic product.
Let's hope that the relatively small sum required for a much needed Sheikh up at The Valley is still available.
2 comments:
http://www.ft.com/cms/s/0/b98263ae-9e02-11dd-bdde-000077b07658.html?nclick_check=1
For anyone keen.
It might also go to reinforce why CAFC, and not a premiership club, are the target, because of the initial cost and the lower overheads to begin with.
That's a good point. But it would also appear from the FT article that they did not appreciate how much the UAE would be hit by the crisis until last Saturday.
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