More Bleak News on The Health of UAE's Economy
Dec. 01, 09 (Hamsayeh.Net) - Stock Markets in Dubai and Abu Dhabi were hit with their second day of straight losses across the board, despite confidence building measures announced by the president of that Persian Gulf nation.
Stocks in Dubai were down 5.6% while those in Abu Dhabi slid 3.57% today. This is after yesterday’s slumps of 7.3% and 8.3%, respectively. Other Persian Gulf states also experienced similar trends. Markets in Qatar went down by nine percent and in Kuwait by two percent.
Earlier, Sheikh Khalifa bin zayad al-Nahyan in a speech aimed at calming sentiments over the health of his country’s economic future said, ‘We would like to comfort everyone that our country today is stronger and better, and that our economy and society are healthy.’
Sheikh’s speech comes at the time when most investors face uncertainty about the economy even though the UAE is awash with oil export money.
The problem with UAE’s economy is the level of debt by one of its largest conglomerate the Dubai World, which amounts to over $60 billion. The company announced to international investors that it is unable to pay the debt thus seeking a six months leeway.
Dubai was at one time a neocon’s heaven for extravagant building projects that defied the nature. Tens of billions were spent on building artificial islands and large buildings in harsh desert environment.
Collapse of the Dubai’s real estate bubble began soon after the global economic recession started in September 2008.
MSN - - - Wikipedia - Hamsayeh.Net
