Dubai debt crisis

11 Stories

Dubai Unveils Plans for World's Largest Mall

It will include 100 hotels, a theme park, and a climate-controlled network of streets

(Newser) - Being home to one of the world's largest malls is apparently not enough for the rulers of the United Arab Emirates, even just five years after Dubai was crippled by a massive debt crisis. The nation’s ruler, Sheik Mohammed bin Rashid al-Maktoum, says his planned Mall of the... More »

Abu Dhabi Sinks $10B Into Dubai

Regional markets up on news of funds to pay Nakheel's bond

(Newser) - Dubai markets soared today on news that the troubled sheikdom has received $10 billion in financing from neighbor Abu Dhabi. The funds come just in time for $4.1 billion to repay an Islamic bond of Dubai World's real estate arm, Nakheel, which matures today. The remaining money will be... More »

Latest Celebrity Getaways

Dubai is out of favor, but these destinations are heating up

(Newser) - With Dubai in dire straits, where will jet-setters go now? The Frisky knows. See full details here .
  • Morocco: Big names like Gwyneth Paltrow and Jennifer Aniston were in Marrakesh recently for the opening of a Chopard jewelry boutique.
  • Croatia: With the war over, celebs such as Steven Spielberg and Robert
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Dubai Crash Will Test Murky Sharia Finance

Unclear how default will affect Islamic lenders, who earn no interest

(Newser) - Dubai World’s unraveling could prove a critical test for the rapidly growing Islamic finance sector, and Dubai’s murky judicial system. A significant chunk of Dubai’s debt is in the form of Sharia-compliant bonds, the New York Times explains. These increasingly popular instruments forbid lenders from collecting interest,... More »

Dubai: We Won't Bail Out Dubai World

Says it's not responsible for state-owned company's debt

(Newser) - Dubai’s government threw investors a curve ball today, saying that even though struggling Dubai World is state owned, the government won’t guarantee its debts or bail it out. Lenders “have deemed Dubai World as part of the government, and this is not true,” Dubai’s finance... More »

Will Cash-Rich Abu Dhabi Bail Out Profligate Dubai?

Weak UAE statement stokes fears of tension between emirates

(Newser) - The United Arab Emirates’ vaguely-worded statement of support yesterday for Dubai—which didn’t actually mention the city-state by name—isn’t reassuring investors, who fear rocky relations between emirates, the cash-strapped Dubai and oil-rich Abu Dhabi. The latter could easily wipe out Dubai World’s delinquent $59 billion debt,... More »

UAE Stocks Plunge on Dubai Fears; Asia Rebounds

Abu Dhabi exchange drops more than 8%

(Newser) - Stock markets plummeted in the United Arab Emirates today, in response to Dubai’s credit woes. The Abu Dhabi Stock Exchange lost more than 8% in heavy trading, while the Dubai Financial Market, a currency exchange, lost 7%. Stocks heavily linked to Dubai did especially poorly; ports operator DP World... More »

UAE Backs Dubai Banks

Central bank steps in to reassure jittery markets

(Newser) - The UAE got behind domestic and foreign banks in troubled Dubai today, with its central bank setting up a "liquidity facility" on the eve before battered global markets were to re-open after a holiday break. The move was widely seen as countering the perception that Dubai might be the... More »

Abu Dhabi Won't Bail Out Dubai With Blank Check

UAE capital will 'pick and choose' its aid

(Newser) - Investors who hoped that oil-rich Abu Dhabi would write a blank check to cover the massive debts of Dubai—its flashier UAE sister city—got some bad news today. The capital city will instead "pick and choose" where to help. "We will look at Dubai's commitments and approach... More »

'Debt Bomb' Nations Could Follow Dubai Into Crisis

Investors fear emirate is canary in coal mine

(Newser) - Dubai's financial implosion could be the beginning of a fresh financial crisis as investors lose faith in the ability of heavily indebted countries to pay their bills. Analysts warn that in the worst-case scenario, the Dubai crisis could lead to mass defaults in emerging markets and even in heavily leveraged... More »

Dow Down 154 in Wake of Dubai Crisis

American exchanges follow worldwide markets into tailspin

(Newser) - The ripple effect from the Dubai debt crisis shook markets around the world today, with American exchanges rebounding from their morning lows but still registering significant losses, the Wall Street Journal reports.
  • The Dow dropped 154.48 points to close at 10,309.92
  • The Nasdaq fell 37.61 to
... More »

11 Stories