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Dubai Hit Hard by Global Crisis
Shinning Star of the United Arab Emirates Losing Luster
Shinning Star of the United Arab Emirates Losing Luster
By Lucy Farndon and Graham Smith
Last updated at 12:12 PM on 27th November 2009
David Beckham and Brad Pitt are believed to be among the stars caught up in Dubai's spiralling credit crisis.
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Towering above the Dubai skyline, the world's tallest man-made construction edges closer to completion
Work on the tower has slowed in the wake of the credit crisis, but developers insist it will open 'soon'
Workers take a break on the 125th floor in the Burj Dubai. In addition to the tower itself, the Downtown Burj Dubai development, which includes The Dubai Mall - the world's largest
The cost of insuring Dubai's debt against default soared yesterday. Also in Abu Dhabi, the price of insuring its own debt rose, so it now costs $134,600 per year to insure $10million of its sovereign debt.
Deloitte has flown out a specialist team from London to work on the restructuring.
A spokesman said: 'We can confirm that Aidan Birkett, managing director for corporate finance at Deloitte, has been appointed chief restructuring officer to Dubai World.'
Dubai World is likely to be forced into asset sales after the credit crisis triggered a crash in the value of its property assets and decimated finance and tourism in the state. House prices in Dubai slumped by 47 per cent in the second quarter, compared with a year ago.
The World in Dubai, as seen from a satellite, on the 14th of May 2009. A multi-billion pound development designed to make Dubai the envy of the world has ground to a halt
The Dubai government last week removed the chairmen of Dubai Holding and Dubai World, two large state-owned firms.
The emirate is due to repay $4.3billion in loans next month and another $4.9billion in the first quarter of 2010, according to Deutsche Bank.
Shakeel Sarwar, head of asset management at SICO Investment Bank said: 'It's shocking because for the past few months the news coming out has given investors comfort that Dubai would most probably be able to meet its debt obligations.'
They have abused a lot of Indian , Nepali ,Bangladeshi ,sri lankans etc poor workers to build world class infrastructure for themselves. Let them go bankrupt.Btw Nostardamus pridiction is comeing true !... the ruin of all middle east states...but it was starting frm 2012 hmmm these symptoms r showeing like that only
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FTSE latest: Dubai crisis unnerves traders