Emerging shock to system
Greece and Dubai show that instability remains and tail risk is back, writes Gillian Tett
Dubai in turmoil
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The announcement by Dubai World, the government’s flagship holding company, that it wants to restructure its debt raised fears of a default. But how did the booming emirate get into this position?
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Dubai shockwave hits global markets
Tremors from the shock request by Dubai’s government-owned holding company for a debt standstill spread through global equity markets, triggering a sell-off in Asia and heavy losses on Wall Street
Abu Dhabi expected to prop up smaller brother
With Dubai raising the possibility that one of its leading entities may default, attention is now focusing on just how far the UAE’s capital is willing to go to bail out the troubled emirate
Global markets hit by fresh Dubai jitters
A lack of information about Dubai’s flagship government-owned holding company, made worse by a religious holiday in the Middle East, prompted indiscriminate selling of stocks linked to the region
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Comment and analysis
Dubai gambles with its financial reputation
The government’s decision to postpone debt repayments could make the emirate’s rivals more attractive, persuading international companies to decamp to Doha or Abu Dhabi, writes Jim Krane
Emirate has a lot of explaining to do
The decision to ask Dubai World bond-
holders to extend maturities from December to May 2010 was a bombshell and the emirate will pay the price, writes Roula Khalaf
Editorial Comment: A breathtaking blunder in Dubai
With the grenade Dubai has just lobbed into the capital markets by calling for a six-month creditor standstill for its flagship Dubai World holding company, its action looks like either a serious misjudgment or, more likely, a breathtaking cock-up
Atonement for Dubai excess
Executives have lost their jobs amid pressure for a return to a more conservative style, says Simeon Kerr
Dubai World
Neither Argentina’s default in 2001 nor Lehman’s collapse came out of the blue, yet both caused shockwaves. Now it may be Dubai’s turn
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Tough love needed to rebuild the ruins
The Dubai World empire, and Nakheel in particular, was proving to be the emirate’s biggest headache which might need some tough love if the city-state sought to dig itself out of a debt hole and real estate crash
A world-beater carried away by its success
Much of the optimism surrounding Dubai in recent months had rested on the assumption that it was embarking on a serious restructuring of its businesses and would meet its debt obligations
Confidence knocked in tarnished region
Investors had traditionally accepted implicit guarantees that Gulf governments would not allow a related entity to default on its debt
Ruler’s role under close scrutiny
As the effects of the economic crisis rattle Dubai’s foundations, the hands-on style of leadership Sheikh Mohammed bin Rashid al-Maktoum is being examined like never before
Al-Maktoum statement
Sheikh Ahmed bin Saeed Al-Maktoum, chairman of Dubai’s supreme fiscal committee
Jitters spread through Middle East
The collapse of the Nakheel bond and Dubai World’s shock call for a six-month debt ‘standstill’ has seen the world’s stock markets drop as investors dump anything with potential exposure to the region
Major lenders scramble to assess losses
Credit Suisse, in a research note, said European banks could face a 5 per cent increase in bad loan provisions in 2010, or about €5bn after tax, if they lost 50 per cent on their estimated exposure to Dubai
Investors scent property firesale
Real estate investors are preparing for a sale of prime properties from London to New York should Dubai decide to raise cash by selling liquid assets held by its investment companies
Fears rise over Islamic bonds
One investor in the Nakheel sukuk said ‘this is mostly a Dubai issue, not a sukuk issue ... (but) a default would obviously be negative for the sukuk market’
Dubai shock after debt standstill call
Request by indebted government holding company raises spectre of default in Middle East trading hub
Markets reel over Nakheel default fears
Alarm at news that Dubai World’s property arm was restructuring a bond due in December amid fears about implications of default
Pressure mounts over $4bn sukuk
Government faces pressure to clarify whether rescheduling signals a change in policy and whether sukuk restructuruing will be voluntary
Moody’s statement on Dubai downgrades
Moody’s downgrades Dubai government-related issuers’ ratings
Dubai World asks for debt ‘standstill’
Dubai World, a conglomerate owned by the emirate’s government, is asking its creditors for a six-month ‘standstill’ on its obligations
Dubai ousts financial chief over debt troubles
Dubai has removed the high-profile governor of the Dubai International Financial Center as a political power struggle caused by the emirate’s financial troubles continues to build
