Implications of Dubai’s Debt Troubles By Eckart Woertz

Implications of Dubai’s Debt Troubles
By Eckart Woertz

Dubai World's request for a debt standstill has sent shockwaves
through international capital markets and has put the development
strategy of the emirate into question. This Gulf Research Center
report analyzes Dubai's debt structure and how reduced access to
international capital markets will affect its economic options. It
gauges the effect on various Dubai companies and their credit
worthiness and discusses possible contagion on the regional and
international level. The report argues that Abu Dhabi will try to
forge a consensus for more concentration of responsibilities on the
federal level in exchange for its ongoing financial help for Dubai.
The ambitious development goals of the UAE and its wish to play a more
visible role in foreign policy will also require a more centralized
approach to planning and institution building. Finally, the report
weighs various scenarios that could unfold as the Nakheel sukuk will
expire on December 14, 2009.

http://www.grc.ae/data/contents/uploads/Dubai_Debt_Troubles_GRC_Report_8392.pdf