Comments on: Dubai can’t rely on friendly creditors

By: TorontoGuy

TorontoGuy — Sun, 06 Dec 2009 04:10:14 +0000

With all the Dubai bashing that has been occurring over the last few weeks, people have lost sight of the fact that the debt overload was not one-sided. The commercial banks were happily and greedily lining up to lend Dubai all of the funds as well. All of the $58 billion or so loans made to Dubai World were done so without any government guarantee, so why are the banks and investors upset that the government will not bail them out? When things were going well in Dubai over the last few years, were these banks sharing their record profits with the government?

All of the loans that were made were done so on commercial terms. The credit guys at the banks reviewed the financials, and indpendantly decided that each of the Dubai companies was worthy of massive amounts of credit. As such, these same credit analysts are to blame for the losses that their banks will incur.

By: mike scott

mike scott — Wed, 02 Dec 2009 08:14:14 +0000

Having lived and worked in Dubai for over 20 years, I agree totally with the comments made by ‘mess up’. However, I don’t believe that Dubai’s ruler makes totally autonomous decisions on economic development. He must have a whole department run by an appointed government minister to advise on both short and long-term economic development for the Emirate as a whole. Where are the comments on their contribution to the current crisis? Why not put the responsibility firmly in the hands of the inflated egos that enable these ‘Mickey Mouse’ schemes to see the light of day in the first place.

By: Indra

Indra — Wed, 02 Dec 2009 08:13:48 +0000

Dubai gov’nt officials must have been thinking ‘Oh let’s build the biggest, grandest, tallest, most expensive properties in the world… Oh wait we have no one who’s going to rent the property, oops!!’

By: Boris

Boris — Wed, 02 Dec 2009 07:53:24 +0000

Could not agree more with Jon Frodshan!Bravo!I’ve been in UAE and Dubai/Sharga/Abu Dabi hundreds of times during mid 90s.Just for fun or business -OK ,but no more than 3-days.But who would invest or buy property down there.. I really don’t know …maybe an idiot.First of all ,for those ,who have slightest idea what this microscopic country is.. there,YOU ARE nobody!!!You are not protected by their law …not talking about their habits way of life,religion etc. etc.fOR EXAMPLE READ THE POST of Terence Wilding.Bravo again .I’m glad we have the point to open smb’s eyes on that country

By: Jmaximus

Jmaximus — Wed, 02 Dec 2009 07:18:12 +0000

I wonder what the pull out of troops from Iraq has had on them? Now that the US and Britain are pulling or pulled out we don’t need them as a shipping port.

By: benjamin

benjamin — Wed, 02 Dec 2009 06:23:35 +0000

dubai has oil and wont stand to lose anything by itsame goes for brunei and malaysiaall the best

By: Anna

Anna — Wed, 02 Dec 2009 05:22:28 +0000

I’m an expat in Dubai. It’s scary the way local papers are blaming the “greedy Western banks”. Letters to the editor suggest that the emirate refuse to pay back banks from Great Britain and the US. As if it is all our fault.

By: dcardno

dcardno — Wed, 02 Dec 2009 04:22:16 +0000

One cannot understand the effrontery...One also wonders the gullibility of...You do realize that those are completely contradictory, right? If it is so unseemly for the Government of Dubai to disclaim responsibility for DW, that implies that the lenders were reasonable in relying on an implicit parental guarantee. If the lenders were indeed "gullible" in such reliance, then the Government is simply being business-like.It is possible to hold either of the opinions you express - but it is not possible to hold them simultaneously.

By: emk

emk — Wed, 02 Dec 2009 01:17:16 +0000

@mess upWhat does all this have to do with being Arab? The real experts at pocketing the profits when business is good and washing their hands off the losses when things go bad, are the bankers of New York, London, Paris etc and they are certainly not Arabs!emk

By: Terence Wilding, Bond Engineer

Terence Wilding, Bond Engineer — Tue, 01 Dec 2009 23:28:38 +0000

One cannot understand the effrontery of the Dubai Finance Ministry stating that the Dubai Government is not reponsible for the Dubai World debt. They are the sole owner. One also wonders the gullibility of the Lenders who were misled to believe that the Dubai Government was responible fo the debt. If a sensible solution is not reached soon, the financial credibility of Dubai and Dubai World will be seriously impaired, perhaps frever.