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Dubai crisis will not spread, says Invesco’s Garnick

December 9, 2009

dubaiDubai’s financial problems have spooked investors around the world. Moody’s Investors Service didn’t help matters on Wednesday when it said it would review the ratings of  not just of Dubai, but of neighboring emirate Abu Dhabi and the federal government of the seven-member United Arab Emirates federation. Dubai and Abu Dhabi are both part of the UAE, the world’s third-largest oil exporter.

But Invesco’s sassy market watcher, Diane Garnick, says the crisis isn’t likely to spread. Based on her past visits to Dubai, which she dubs a “Las Vegas-wannabe,” she expects little fall-out for other world markets.

“The one thing that Dubai completely aced about Las Vegas is that what happens in Dubai stays in Dubai,” she said during an interview at the Reuters Investment Outlook Summit in New York.  “This crisis won’t spread.” 

Investors should have been wary of Dubai all along, she added,  since the hotel construction boom was built without enough other attractions to pull in tourists.  “It’s like a tour of different hotels — that’s all it is,” says Garnick, who’s based in New York. Atlanta-based Invesco oversees about $419 billion for retail investors and institutions.

One comment so far

I’m a big fan of Diane’s. I’m so glad you asked her about Dubai. We’ve been talking about it non-stop ever since the news broke… we just asked her about the US ratings being jeapardy on her fan site.

http://www.facebook.com/pages/Diane-Garn ick/188133090053?ref=ts

- Posted by Carol Stamos
  • About Aaron

    "Boston-based reporter covering investment management and investing. Previously worked at Businessweek in Boston and at The Industry Standard and Reuters in Washington, D.C."
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