Wilbur Ross on Dubai's Debt Crisis

[bugskiwurm]

What happened to Dubai is a backfire from absolute aristocratic system. Government policies are decreed by a few who has the final say to all dealings, without opposition, without criticism, and with minimal influence by expert management. They have economic system who only benefits the few locales who have extravagant lifestyles. They own profitable cmpanies and prtly own through forcd sponsorships of small and medium scale expatriate businesses, cropping GDI for productive expatriate majority.

[LifeTraveler32]

FUCK NEWS, read books, and you'll know, that

THESE ECONOMICAL holocausts are engineered.

[TheIxtlan]

Allah will save Dubai.

[caponekartel]

if Dubai can't repay their debt...

of coz IMF will play their role to support Dubai...meaning next Dubai will under IMF power i.e west influence....like UAE gonna be one of IMF puppets..

this is what west want to do long time ago... now this is the right time for them...think arabs! similarity what happen in 1999, many countries fall to IMF

i guess this is a lesson from God for arabs countries...u all arabs should use your wealthy to help your bro&sis in palestine/iraq/afgan..more useful

[msabri1]

What happens if Dubai can't repay their debt?

[SupportDubai]

Leave Dubai alone!

[TheAustrianJohn]

Sorry, not many people are fell bad for those spoiled Arabs who are only rich because they happened to be born on ground that has oil in it and not because they *worked* their way to upper class.

[Sulculac]

You either don't watch the news or you're an idiot ... how can an oil rich city (which Dubai isn't) be in this mess in the first place?

[maximouni]

Most speculaters thought that a country in the EU would be the first to fall, But DUBAI's name had come up during a few conversations with the same speculaters. They were right now there will be a EU country that will continue the snowball effect. One Asian country was mentioned Thailand was to be country for the pacific rim. The great bubble has burst. Hold on boys its gonna be a wild ride.

[DillonX]

This could strengthen the dollar.

[thomasucc]

What I cant understand is why the Arabs are even talking about default. Ireland (my country) and Iceland didnt even contemplate default. We the Irish taxpayers are forced to pay for companies that fail to the tune of 77 Billion euros or about 100 billion dollars in a country of only 4 million people. Are we been told the truth about how much they really owe and why are the Dubais taxpayers not on the hook as the Icelandic and Irelandic people are

[TheAvengingApostate]

Um, no taxpayers in Dubai. Dubai is talking about a default to get neighboring states to help it, which they are refusing to do. Abu Dhabi, the oil rich emirate and the capital of the UAE is going to pick and choose which projects and companies it wants to bail out, leaving the majority of the debt that Dubai owes unpaid. Now what that does is, leaves Dubai with no choice but to claim bankruptcy. Dubai does not have any production so they have nothing to go back on.

[thomasucc]

To illustrate how the banks failing have affected Ireland. Im a Ph.D student/researcher the cuts in my researcher education income grants are shocking. In 2007 I got from the Department of Education: $820 per month for living expense, $292 for accommodation, $740 for research materials and $120 for travel. This was a monthly income of $1,972. Today all of these university payments are gone except for $820 living expenses. So in effect over a $1,000 per month of my income is going to the bankers

[XionXXXX]

Thought they had laws in Islam against Usury?  I guess this proves they don't, and they just make that crap up themselves.

[ehcmier]

Islam is one thing, but each individual person who believes in it believes in it in various degree per tenet. You know, like all human beings. There are those in power, the bureaucracy, the greedy, the unrepentant, the fearful, the--you know, human beings--the full spectrum of humanity found wherever there are lots of humans. All tiers of society, degrees of humility, sincerity and utter devotion lorded over by the vain, duplicitous, utterly selfish and power mad. Sheep and wolves--everywhere.

[lyricaladaud]

"Islaamic Bonds"!?! Bonds are haraam i.e. impermissible in Islaam because it ribaa, i.e. usury.

[humaner]

Dubai was a party that had all the guests but no caterer.

[TM789SP2]

please elaborate, iam not that informed about dubai...

[HasanKhanjar]

okay long story short...

dubai one of the seven emirates of the United Arab Emirates of which capital is Abu Dhabi

Dubai in the last decade encouraged foreign investments...real state ... the inflation was pretty high for i.e. u would stand in a LINE in 06 buy an villa go to the back of the line and sell it for double ... by the time the global financial crisis hit ... dubai's fall was dramatic ... ... it was delayed coz ppl thought abu dhabi's oil money can save the day but now we doubt it!

[thomasucc]

What I cant understand is why the Arabs are even talking about default. Ireland (my country) and Iceland didnt even contemplate default. We the Irish taxpayers are forced to pay for companies that fail to the tune of 77 Billion euros or about 100 billion dollars in a country of only 4 million people. Why are the Dubais taxpayers not on the hook as the Icelandic and Irelandic people are?

[alfromharriston]

I recall reading last year that Dubai has no oil and is loathed by its neighbors. It is possible that Abu Dhabi and others, even Israeli intrests will pillage Dubai in the week's to come. We may also see that default is better than tax slavery.

[znasser1]

Because there are 0 taxpayers in Dubai!! UAE citizens do not pay taxes because the country's income comes from oil revenue. Default is an option that governments decide on. However, if a country defaults this could further drive away investors and any future investment prospects which is a risk some countries may decide to take depending on the risk assessment.

[thomasucc]

Unbelievable so how do they fund services, such as education, heath, transport and foreign debt

[znasser1]

good question! UAE citizens constitute no more than 15% of the population may be 20% at the most (no reliable statistics). They receive free medicare and services from the Oil revenue. Because of the Oil revenue they never really had any serious debt. In fact they had surpluses more often. This is why it was lucrative for Western, other Arabs and Asian expatriates/workers to work in the UAE as it was a tax free Haven.

[TheAvengingApostate]

They had surpluses, now each Dubai citizen (not the UAE), is US$400,000 in debt. :-) I am sure they're enjoying that slave labor now!

[thomasucc]

People in Ireland and Iceland are furious with Dubai and Banks

[znasser1]

Actually its more like Mohamad Bin Rashed Al-Maktoom (Dubai Sheikh/Prince) is wholly responsible for this debt of approx $182B. He just needs to work a bit of over time to catch up on payments -:)

[Winterfairy777]

@thomasucc proplr in Dubai do not pay taxes.

[hsnse]

Hmmm.....so u still do not know that Dubai doesn't have any taxpayers !!

Its a tax free land dude...

[HasanKhanjar]

becuase there are nothing as taxpayer in dubai ... like UAE locals doesnt pay taxes ...