Wednesday, Nov 25, 2009

Holiday Homes for Let with Sea View.

Telegraph: Dubai recovery hopes hit by debt 'standstill' call

"Dubai was among the most dramatic victims of the credit crunch, with property prices halving from their highs in September 2008, leaving a huge overhang of debt". "Much of it was in the hands of government-owned companies, with Nakheel, which has been forced to slow work on show-piece developments like its artificial island chain The World, among the most prominent".

Posted by alan @ 10:39 PM (1157 views)
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1. drewster said...

Only last year, some people claimed that Sukuks (sharia-compliant Islamic bonds) couldn't be affected by subprime etc.:

Bahrain: Sukuk is solution to US sub-prime crisis
Bahrain Tribune - 19/03/2008
In the wake of on-going global credit crunch and failure of the US Fed to come up with an immediate solution to control the damage triggered by the sub-prime mortgage crisis, Islamic banking experts believe that sukuks or Islamic bonds are true solution to this persistent crisis.
Islamic bonds, carrying unique structure features, cannot fall foul of a crisis such as sub-prime mortgage crisis. Sub-prime mortgages are backed by dubiously rated collateralised debt packages which subsequently precipitated a global credit crunch, a senior banker told a global meet on sukuks which opened in Bahrain yesterday.
Chairman and managing director of the Investment Daar, said: "A crisis such as the mortgage one would technically would be unthinkable in the Islamic capital markets sector because it would be againt shariah principles to sell a debt against a debt.

Where's my O RLY? owl....

Wednesday, November 25, 2009 10:58PM Report Comment

2. gone-to-colombia said...

Could the vulgar and ridiculous Palm Island become the icon of an age of profligate spending and worthless investment?

Wednesday, November 25, 2009 11:09PM Report Comment

3. general congreve said...

Sukuks, I'll take 50 ounces please! Sorry, did I say Sukuks? I meant to say gold.

Thursday, November 26, 2009 01:12AM Report Comment

4. paul said...

Like Dubai's The World, the situation there with the huge debt overhang is a metaphor for the entire world's developed economies, especially the UK's which has still not been resolved.

Thursday, November 26, 2009 06:31AM Report Comment

5. will said...

So Dubai is heading the same way as California. How the mighty fall after the good times.

Thursday, November 26, 2009 08:57AM Report Comment

6. cynicalsoothsayer said...

Is London next?

Thursday, November 26, 2009 11:19AM Report Comment

7. braindeed said...

@2 & 6
yes and no

Thursday, November 26, 2009 12:12PM Report Comment

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