Updated: April 18, 2024

“You don’t have to be Einstein to work out that things are slowing down.”

Not the words of an Embittered Expat™ retrenched from his tax-free job in one of Dubai’s endless “Cities”, nor a disgruntled journalist having a whinge over an overpriced pint of frothy haram-juice in the Radisson’s Media Bar, but a quote from the CEO of one of the world’s biggest construction companies operating in Dubai:

“There are undoubtedly issues in Dubai.”

The latest word has it that Abu Dhabi has already bailed Dubai out. Dubai allegedly made the desperate (or cunning?) move of courting Saudi and Iranian funds, and fearing increased Iranian influence, Big Dhabi stepped in.

Despite that, the official line is that Dubai still has US$80 billion worth of debt, and no one knows exactly what needs refinancing when:

“The Dubai government has announced it has debts totalling $80bn, but has yet to release a detailed outline of its servicing requirements or the ability of its assets to generate cash flow.

“Borse Dubai is seeking to refinance a $3.8bn loan which matures this week, but officials say the government-owned group is finding it hard to secure the financing it needs from foreign banks, in spite of strong initial interest.”

Meanwhile Dubai Holdings is restructuring and consolidating to cut costs, while local newspapers blame the international economy rather than any wobble in the sheikhly Vision™ :

“Dubai will be the fastest city to recover from the impact of the ongoing credit crunch, and the emirate’s real estate sector will once again witness a period of long term boom.”

But when international newspapers are printing “lurid rumours” that the Palm Jumeira is sinking and only cockroaches come of out of the hotel taps, the confidence needed to restore Dubai’s boom times may be a very long way away.

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