Is Dubai f...*???

[DG1]

Very good article about what is the real problem

http://business.maktoob.com/20090000420446/_Thanks_but_no_thanks_/Article.htm

Lack of transparency not accepted anymore by investors and banks:
http://www.bi-me.com/main.php?id=43735&t=1&c=34&cg=4&mset=1011

You can take this to the bank

The trouble is that unless and until there is an admission that the status quo could be better then nothing will change

[Sal1]

DG, you are right but it seems that status quo is not accepted anymore by international financial system and investors.

http://www.france24.com/en/20100126-dubai-property-drag-prompts-imf-downgrade-uae-growth#comments

Dubai should stop talking about the biggest this, the tallest that and start working on the best and most transparent investment environment if they want to stop the fall into the biggest economical depression ever. They should rebuild credibility and trust in their economy and this starts with the property market.
Who would invest in a country with no laws to protect investors? The bad news travel faster than good news. Media was asked to speak about Dubai achievements in some areas. Now when every single country is competing for the money to fuel the growth of their ailing economies, the media will be pleased to talk about Dubai's lack of laws and destroy their reputation. Every country will try to convince their nationals that Dubai is not a safe heaven for the money.
There is a nother type of war starting in 2010. It is called the money attraction war. Europe and USA are in desperate need of cash to rebuild their banking systems and they will use every single trick to scare people outside and make them bring the money's home. I dont understand that Dubai authorities have not yet realized what the game is all about and taken simple but effective steps to deal with the real issue.
Pride is not good adviser for business good sense

[Sal1]

To confirm the post above

DHCOG's terse statement and reaction underscores a contrast between what Dubai is saying it wants to do and what it is actually doing to boost investor sentiment, analysts said Tuesday.

"At the moment, there seems to still be a 'shoot the messenger' syndrome in any attempt to shed light and bring transparency into how things stand," Cubillas Ding, research director at Celent, an international financial research and consulting firm in London, said, referring to the dropping of S&P.

http://www.businessweek.com/ap/financialnews/D9DFGP3G0.htm

[saida]

Thank you for your detailed and intelligent answer!! i really loved it and agree on everything!!!!!!

[Harry Potter]

Not a problem, anytime

[Sal1]

Dubai Determined to Repair Reputation After Dubai World FalloutFebruary 07, 2010, 11:22 PM EST More From Businessweek

Feb. 7 (Bloomberg) -- Dubai wants to repair the damage to its reputation after it roiled world markets with a request to delay debt payments late last year, said Nick Anstee, the 682nd lord mayor of the City of London.

“They are absolutely determined to mitigate that reputational damage by arriving at a solution because they want to continue to deal and trade with people who have been part of building Dubai to what it’s today,” Anstee said in an interview in Dubai today after meeting government officials.

Dubai World announced Dec. 1 it was seeking to alter terms on about $26 billion of debt. Property unit Nakheel PJSC, which is building palm-tree shaped islands off the emirate’s coast, paid back $4.1 billion on Dec. 14 for a maturing Islamic bond after Abu Dhabi bailed out Dubai. Dubai World has so far failed to present a restructuring offer to lenders and declined to say when a deal could be struck.

While officials in Dubai’s government “were not putting a timetable, there is however a great sense of urgency on bringing this matter to a positive resolution,” said Anstee, who is the elected leader of the City of London, the U.K. capital’s financial district.

Anstee didn’t name any of the banks he discussed with Dubai’s government. Barclays Plc, HSBC Holdings Plc, Lloyds Banking Group Plc, Royal Bank of Scotland Group Plc and Standard Chartered Plc are among U.K.-based lenders that operate in Dubai.

--Editors: M. Shankar, Louis Meixler
To contact the reporter on this story: Zainab Fattah in Dubai on +971-4-364-1027 +971-4-364-1027 or zfattah@bloomberg.net
To contact the editor responsible for this story: Andrew Blackman at +49-30-70010-6223 +49-30-70010-6223 or ablackman@bloomberg.net.

There are several elements in the equation to repair the reputation.
Banks are only one element, the other one who is not considered are owners dealing with Dubai properties and Salwan.
The owners of free hold in Dubai feel righfully cheated as there are no laws protecting them.
They are milked by all the companies including DEWA, Empower and Dubai Municipality and therfore every body is willing to get there money out of Dubai.
Duai has a much bigger credibility issue than they want to acknowledge
If they dont take appropriate measure in all areas of concern, they will never get the reputation back.

Changing names will not solve the issue, Dubai authorities should walk the talk:
http://business.maktoob.com/20090000432518/Cityscape_drops_Dubai_from_brand/Article.htm

[Sal1]

To the point:

The losses in the fourth quarter is only a trailer. The real movie is yet being canned. 2010 will be a year of reckoning for the entire Gulf and more so for UAE in general and Dubai in particular.
Most of the Gulf countries had resorted to short term borrowings for long term infrastructure investments. Bad in principle, finance and economics.
Inadequate legal system, inappropriate statues, and a banking system that grew in geometrical proportion by volumes while manpower, knowledge, skills, systems and procedures and fiscal analysis were skewed and lagged very much behind contributed to the pulldown.What we are seeing in the Corporate sector and the banking sector is only the proverbial tip of the proverbial iceberg. 9/10th of the issue is under-water unseen.
It is like thumping down on thin ice when you have to carefully tread on it.
Losses were waiting to happen. And now the floodgates will be open and the resultant deluge will drown many banks and corporates.
Ground realities are to be always respected. Prudence even in the best of times saves one in the worst of times. Talent, education, knowledge and experience need to be acknowledged and appreciated. This is the natural law.
Arrogance, avarice and attiude is bound to produce only losses.
Every economy undergoes such a turmoil. Thereafter there will be consolidation and growth - healthy growth.
We can do nothing but allow it to happen even if means disaster for now.

Dr KB Vijayakumar PhD, Dubai

[Hotchillipepper]

Banks situation is not clear yet. Maybe someone in JBR knows more?

http://www.thenational.ae/apps/pbcs.dll/article?AID=/20100304/BUSINESS/703049886/1005

[Sal1]

http://online.wsj.com/article/SB1000142 ... tion_Heard

For the first time since Dubai embarked on its "build and they will come" development strategy, international companies in the emirate are pessimistic about its medium-term future. Business confidence in the emirates was down 30 points in the fourth quarter of last year, according to a survey by HSBC.

Dubai must embrace greater political and financial transparency and offer investors the protections of a sound legal system if it is to win back investor confidence.

[Sal1]

Good story and Dubai Holding is involved.....How to improve the equity market image and Dubai credibility whe such things happens with auditors and influnet parties involved? though job.

http://www.thenational.ae/apps/pbcs.dll/article?AID=/20100322/BUSINESS/703229852/1005/business
and guess what, all these nice people are free out there enjoying the money embezzeled from small investors. I read that poeple went to jail for a AED 2000 check and for kissing a friend. Very strange times out there

[Sal1]

ckeaning the mess?

http://www.thenational.ae/apps/pbcs.dll/article?AID=/20100502/BUSINESS/705029914

[Sal1]

Yep, this is one way to explain all the money leaving Dubai banks...

http://www.business24-7.ae/banking-finance/banking/banks-lose-dh112bn-of-foreign-cash-2010-05-05-1.240359
The other reasons are.....:
- lack of confidence in the property market due to.......
- countries fighting for the same money and pushing their nationals to bring back the money by offereing better deals
- people leaving and taking with them their moneys
- companies closing and going to more investors friendly countries
- etc...

No honey, no money that is the rule.

[Deema H]

There are a lot of haters out there. Dubai will be fine in the long run

[sandra]

Totally agree Deema.

[dagmeister]

Certainly hope that proves to be the case as I'm committed to the long term.