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Goldman Sachs Dubai Debt Call.

By shehab ⋅ December 12, 2009 ⋅ Email This ⋅ Print ⋅ Post a comment
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DUBAI, UNITED ARAB EMIRATES - DECEMBER 02: The...
Image by Getty Images via Daylife

Goldman Sachs held a conference call on the Dubai World debt developments for their clients recently:

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It’s worth a listen. Highlights:

  • Underlying fiscal situation of Dubai structurally unsustainable. New issuance, asset sales or federal support inevitable.
  • UAE‘s growth trend rate may now be permanently lower.
  • This is a Dubai-specific issue and not representative of the broader region (Qatar, Saudi etc).
  • Dubai banks more worrying than Abu Dhabi’s. Emirates National Bank of Dubai may be particularly vulnerable.
  • Dubai Holding questions deflected but analyst did say it is not directly related to the government of Dubai referring to the company’s ownership by the ruler;

    • HT: ArabianMoney.

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    Discussion

    View Comments for “Goldman Sachs Dubai Debt Call.”

    • SamanthaCherley
      Dubai doesn't have a real debt problem. They just need to approach debt consolidation strategies which will save them quite fast. Dubai invested a lot on superb projects, but now they face the problem of cashing in on those projects which could be a problem, but one that can be fixed.
    • rupertbu
      What a great shame items such as this will be ignored by the masses, both journalistic and UAE based! As they have repeatedly chosen to ignore the very clear writing on the wall, for the past two years, and now express surprise.

      Ostriches repeatedly come to mind, even more so when I have just seen an Emirati tweet "D-I-E haters" in response to foreign press comment!
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