Dubai feels the financial pain
This is the VOA Special English Economics Report, from http://voaspecialenglish.com
In recent years, has grown shining city in the desert of Dubai - and even outside - on the Gulf coast. Palm Island was built in the form for the houses, hotels and entertainment. In October two thousand eight the developer announced the same plans for the tallest building in the world today.
But as soon as the economic recession forced the company to suspend plans for Nakheel. Dubai, United Arab Emirates, and the European Union of 38 year, seven territories ruled by warlords.
But unlike its neighbor Abu Dhabi, the oil has not fueled economic growth in Dubai. Oil is only six percent of its economy. Instead, enabled the industrial goods and services expansion. Now, Dubai is the financial pain. The reaction of a concern for some investors.
In November, he called for greater investment for the company and Dubai-based delay of up to six months in the payment of some debt. Dubai World seeks to re-negotiate the terms of $ 26 billion of debt. All of this is linked to Nakheel, which is part of Dubai World.
Government-owned Dubai World and control of the restructuring. But he said the Finance Director in Dubai said the government does not guarantee their debt.
Dubai World to creditors a total of $ 70000000000. The company is not a means of investment for the government as a sovereign fund. This is the holding company for businesses in the planning and operations at the port, energy and financial services. The group used the borrowed funds for economic development.
Ghiyath Nakshbendi American University in Washington indicate that the problems are linked to the collapse in world prices of real estate. He said: "Emerging markets are the victims of the global economy than anything else and there is no exception."
It provides that the debt restructuring to achieve success. He said that Dubai and its leaders too much at stake to allow the creditors - banks, such as Britain - the losses incurred. However, the Declaration was a surprise.
Now, faced with Dubai World in the sale of land to heavy losses for the fund-raising. Some experts wonder how Abu Dhabi will be ready to save Dubai. Their relationship was tense at times.
He said Ghias Nakshbendi Dubai World will have to change their habits. He said that Dubai has borrowed a lot of money in a very short period of time. Of course, Dubai was not alone in collecting the debt during the years of easy credit. He is concerned that the crisis could be the first of more to come in other regions of the world.
This is your KUNA English Economics Report.
(Adapted from 04Dec2009 Radio program)
In recent years, has grown shining city in the desert of Dubai - and even outside - on the Gulf coast. Palm Island was built in the form for the houses, hotels and entertainment. In October two thousand eight the developer announced the same plans for the tallest building in the world today.
But as soon as the economic recession forced the company to suspend plans for Nakheel. Dubai, United Arab Emirates, and the European Union of 38 year, seven territories ruled by warlords.
But unlike its neighbor Abu Dhabi, the oil has not fueled economic growth in Dubai. Oil is only six percent of its economy. Instead, enabled the industrial goods and services expansion. Now, Dubai is the financial pain. The reaction of a concern for some investors.
In November, he called for greater investment for the company and Dubai-based delay of up to six months in the payment of some debt. Dubai World seeks to re-negotiate the terms of $ 26 billion of debt. All of this is linked to Nakheel, which is part of Dubai World.
Government-owned Dubai World and control of the restructuring. But he said the Finance Director in Dubai said the government does not guarantee their debt.
Dubai World to creditors a total of $ 70000000000. The company is not a means of investment for the government as a sovereign fund. This is the holding company for businesses in the planning and operations at the port, energy and financial services. The group used the borrowed funds for economic development.
Ghiyath Nakshbendi American University in Washington indicate that the problems are linked to the collapse in world prices of real estate. He said: "Emerging markets are the victims of the global economy than anything else and there is no exception."
It provides that the debt restructuring to achieve success. He said that Dubai and its leaders too much at stake to allow the creditors - banks, such as Britain - the losses incurred. However, the Declaration was a surprise.
Now, faced with Dubai World in the sale of land to heavy losses for the fund-raising. Some experts wonder how Abu Dhabi will be ready to save Dubai. Their relationship was tense at times.
He said Ghias Nakshbendi Dubai World will have to change their habits. He said that Dubai has borrowed a lot of money in a very short period of time. Of course, Dubai was not alone in collecting the debt during the years of easy credit. He is concerned that the crisis could be the first of more to come in other regions of the world.
This is your KUNA English Economics Report.
(Adapted from 04Dec2009 Radio program)
Dubai feels the financial pain
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