You can’t make chicken salad with chicken shit. You cannot turn Arab quicksand into gold. Â Where is the substance? Where is the knowhow, where is the innovation, the science, the creative minds, the technology, the brilliant minds to drive this Fata Morgana in Arabia?
Unlike Israel, which has a pool of educated, innovative and productive people, the Arabs rely entirely on Western knowhow and third world slave labour. Â The Arabs themselves do next to nothing.
Where are the people, the tourists, the masses of rich retirees, the businessmen, Â the buyers, where is the society of the future in this mad construction frenzy?
You will lose your money. We, our banks, those who jumped on this Arab carrousel, will be fleeced. And once again the nutroots, the Obama-bastards and their commie-vassals will blame the failure of the Capitalist system in order to destroy us Â in order to bring about their One World Utopia, with ‘Global Worming’ thrown in for free.
thanks to Dhumme Dhimmi. Here’s the countdown meltdown:
No matter which way you cut it, or where the information comes from, it is getting worse:
A little wiggle side-ways:
A balanced view:
The sheik is sheikin’! The World is panicking!
…”While Dubai Holding is not government-owned, it is owned by Sheikh Mohammed bin Rashid, the Vice President of the UAE and Ruler of Dubai, and controls his personal assets.”…
…”Analysts say the sudden surge in concern about DHCOG may reflect a more general retreat in appetite for risk among global investors. With the end of the year approaching, many market participants are already on holiday and others are unwinding positions to close out their books for the year.
But the moves also come amid a growing realisation that Dubai is preparing to force its creditors to share some of the losses it has suffered in the wake of the financial crisis.”…
The most telling sentences in the whole story:
..”The seven bourses added around 80 billion dollars to their capitalisation which ended the year at 680 billion dollars from 600 billion dollars at the end of 2008.
That is still far below their end-2007 value of 1.116 trillion dollars, however.”…
N.B. ‘billion’ in the first…and ‘trillion’ in the second. Whooaaaahhhh!!!
The extent of the damage is becoming public and official:-
Damn that wonderful ‘Sharia Finance”! A capital investment!
The trickle before the Global Tsunami. Mark my words!
‘Moody’s Downgrades ADCB to A1â€²
Calm before the Tsunami= Â Dead Cat!
The Saudis are going broke bailing out Dubai, if they’ve bought into this bond scheme. Not that I care, though:
Joint UAE-Saudi bond market advised to tap domestic investments Disc
Gulf Base/thanks to Kafir Canuck
The UAE should join Saudi Arabia in creating a bond market to ensure sufficient funding for projects and offset liquidity shortages caused by the global bank credit tightness, according to a key Saudi bank.
The Saudi American Bank Group (Samba), one of the largest banks in the Middle East, was commenting on plans by the UAE to set up a bond market to create a cheaper funding vehicle and tap domestic investments.
“There has been little new information on government proposals to develop local currency bond markets, nor on plans to offer federal guarantees for bonds and medium-term notes issued by local banks,” said the bank in a study.
“In the medium-term, it would certainly be advantageous to move in this direction. The need for long-term financing in the UAE is large and an active local bond market â€“ both conventional and sukuk â€“ would help reduce reliance on bank credit and external finance, as well as offering an alternative to the IPO market.”
Samba said developing such a market requires establishing liquid secondary markets, greater institutional demand from the likes of pension funds, insurance companies and mutual funds, and the development of a strong ratings culture, supported by government benchmarks. “These will all take time,” it said.
The study noted that creation of a bond market should be prompted by a recent wave of bond issues by the governments of Abu Dhabi and Dubai as well as other semi-official and private entities in the country.
In Abu Dhabi alone, total issuance so far this year is around $12 billion (Dh44bn), with more to come, according to the report.
It also cited a recent decision by the government-controlled Abu Dhabi Commercial Bank to issue $1bn in five-year bonds at 262.5 basis points above similar US Treasuries. This follows National Bank of Abu Dhabis recent $850 million issuance with an initial spread of 228bps, which was the first from a financial institution in the Gulf Co-operation Council since 2007.
“Increasing access to international capital markets will help support the UAEs bank balance sheets with positive implications for lending,” said Samba. “In addition, having issued $1bn in conventional bonds in June, Abu Dhabis Tourism Development and Investment Company is reported to have finalised a new $1bn five-year sukuk, while the Abu Dhabi National Energy Company (Taqa) issued $1.5bn in bonds in September with a spread of 250bps for five years and 287 bps for 10 years.”