Wednesday, January 14, 2009

You don’t say!?

Moody's says outlook of UAE banks 'negative'

Did you know that HSBC in teh UAE don't have a debit card facility? Yep, that means everyone buys everything on credit. Oh, and cars are pretty much all on credit too (and some banks are kind enough to offer "rent loans" so you can afford your overpriced one bed). I would say that the amount of money borrowed against cars, on credit cards and as mortgages on property is mind-blowing.

Posted by brickormortis @ 04:35 PM (654 views)
Please complete the required fields.

2 thoughts on “You don’t say!?

  • I have a debit card from HSBC Dubai so not quite true.

    Please complete the required fields.

  • I live in Dubai, and the banks here will be going down in flames spectacularly. The housing bubble here was massive, for 3 years real estate was the only business in town and the whole place was mortgaged up to the eyeballs. The number of BTL loons with 20 or 30 properties all leveraged can only be guessed at. It popped about 3 months ago, and since then prices in some places have falled 50% already.

    The local banks will be absolutely spanked. Most of the population is expats, so they will just run when their BTL dream crumbles. The banks will be left carrying the can. Recently HSBC called me to offer me a deposit for 12 months at 6.1% for the local currency (which is pegged to the dollar). With the same bank I can get only 2% on my USD. That suggests to me a MASSIVE chance of a currency devaluation in the next year.

    Think about the UK economic problems after the UK bubble collapsed. Then think how it would be if construction was 40% of the economy instead of 5%, and how far things could fall if annual price rises were 80% instead of 15%.

    We are talking total and utter meltdown.

    Please complete the required fields.

Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>