Dubai shock after debt standstill call

Presenting a list of the more colourful names understood to have invested in Nakheel’s Dubai Palm development (Source: tabloids and press).

* David Beckham (footballer, international fashion icon)
* Michael Owen (footballer)
* David James (goalkeeper)
* Joe Cole (footballer)
* Andy Cole (retired footballer)
* Kieron Dyer (footballer)
* Brad Pitt and Angelie Jolie (actors)
* Michael Jackson (king of pop)
* Naomi Campbell (model)
* Denzel Washington (actor)

Britons, meanwhile, accounted for about 25 per cent of the buyers with the rest from 75 different nationalities, including several Americans, according to the Daily Mail.As for banks, the Emirates Bank Association lists the following institutions as being the largest foreign banks invested in the UAE:

* HSBC $17bn
* Standard Chartered $7.8bn
* Barclays $3.6bn
* RBS $2.2bn
* Citi $1.9bn
* BNP Paribas $1.7bn
* Lloyds $1.6bn

http://ftalphaville.ft.com/blog/2009/11/26/85506/im-a-celebrity-get-me-out-of-dubai/
 
Quote from ASusilovic:

Presenting a list of the more colourful names understood to have invested in Nakheel’s Dubai Palm development (Source: tabloids and press).

* David Beckham (footballer, international fashion icon)
* Michael Owen (footballer)
* David James (goalkeeper)
* Joe Cole (footballer)
* Andy Cole (retired footballer)
* Kieron Dyer (footballer)
* Brad Pitt and Angelie Jolie (actors)
* Michael Jackson (king of pop)
* Naomi Campbell (model)
* Denzel Washington (actor)
More...

these guys never actually invested.

They were given the properties for free in exchange for leeting it known that they had set foot in Dubai.

Some of them actually never set foot in Dubai and the one that did will never again.

Do you think that Brad Pitt and Angelina Joile or David Beckham actually know where Dubai is and most important will care going forward?

I think the folks above are more Caribbean-type customers and do not plan to spend any time in Dubai. On the other hand, London cabbies are very much a Dubai clientele.

Yes, the world is not fair. Some get it for free and don't give a shit, others work hard to invest in a dream, get stuffed and will turn out to be more miserable than ever.
 
search for a related earlier post of mine, I mentioned months ago that this is exactly gonna happen.

Those "oil terrorists" will go exactly where they are coming from, riding camels and horses in the desert. There are so many pointers that the basis for their money wasting life style is so flawed: Not a single investment they have ever touched has made a positive return, their whole plan of turning the region into a tourist destination is laughable, their belief that the rest of the world will be dependent on their oil for the rest of their life is also more than questionable. No other region in the world is so blessed with natural resources yet no other people on this planet have wasted so much money, kept all their citizens rich enough to not risk an uprising yet still incredibly poor while the Sheiks' hundreds of sons race Ferraris.

What a regretful lifestyle and I wont shed a single tear if this whole region goes down the river because thats exactly what they deserve!!!





Quote from ASusilovic:

Dubai has shocked investors by asking for a debt standstill at Dubai World, the government’s flagship holding company that has developed some of the world’s most extravagant real estate projects.

The move raised the spectre of default in the Middle East’s trading hub just as early signs of economic recovery have emerged. During the boom, Dubai rode the wave of easy credit generating phenomenal economic growth but was badly hit by the global credit crisis.

Dubai’s surprise move angered some investors who had been reassured by local officials for months that the city would meet all obligations on its $80bn (£48bn) of gross debt in spite of recession and a real estate crash.

“Investors view this as shockingly bad news,” said Rob Whichello of BNP Paribas. Two hours after announcing it had raised $5bn from two Abu Dhabi banks, the department of finance asked for a standstill until May 30 on all financing to the heavily indebted Dubai World and its troubled property unit Nakheel, which is due to pay back $4bn on an Islamic bond on December 14.

Dubai also launched a restructuring of the government holding company, which oversees ports operator DP World, the UK-based P&O Ferries and troubled investment company Istithmar. Nakheel, the developer behind the city’s Palm Islands that boast celebrity owners such as David Beckham, has had to shed thousands of staff and left contractors out of pocket as local property prices halved and credit dried up.

A symbol of Dubai’s pre-crunch excess, the government company has had to cancel plans for the world’s tallest tower and a constellation of reclaimed islands, as collapsing cash flow left the developer on the brink.

http://www.ft.com/cms/s/0/46b4065c-d9f7-11de-b2d5-00144feabdc0.html
More...
 
Quote from asiaprop:

search for a related earlier post of mine, I mentioned months ago that this is exactly gonna happen.

Those "oil terrorists" will go exactly where they are coming from, riding camels and horses in the desert. There are so many pointers that the basis for their money wasting life style is so flawed: Not a single investment they have ever touched has made a positive return, their whole plan of turning the region into a tourist destination is laughable, their belief that the rest of the world will be dependent on their oil for the rest of their life is also more than questionable. No other region in the world is so blessed with natural resources yet no other people on this planet have wasted so much money, kept all their citizens rich enough to not risk an uprising yet still incredibly poor while the Sheiks' hundreds of sons race Ferraris.

What a regretful lifestyle and I wont shed a single tear if this whole region goes down the river because thats exactly what they deserve!!!
More...

very well said asiaprop
 
Good timing with this apocalyptic video game set in Dubai, announced in November 2009. A glimpse into the future? :cool:

<object width="560" height="340"><param name="movie" value="http://www.youtube.com/v/i5ZswWcpinw&hl=en_US&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/i5ZswWcpinw&hl=en_US&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="560" height="340"></embed></object>
 
Quote from ASusilovic:

Dubai has shocked investors by asking for a debt standstill at Dubai World, the government’s flagship holding company that has developed some of the world’s most extravagant real estate projects.

The move raised the spectre of default in the Middle East’s trading hub just as early signs of economic recovery have emerged. During the boom, Dubai rode the wave of easy credit generating phenomenal economic growth but was badly hit by the global credit crisis.

Dubai’s surprise move angered some investors who had been reassured by local officials for months that the city would meet all obligations on its $80bn (£48bn) of gross debt in spite of recession and a real estate crash.

“Investors view this as shockingly bad news,” said Rob Whichello of BNP Paribas. Two hours after announcing it had raised $5bn from two Abu Dhabi banks, the department of finance asked for a standstill until May 30 on all financing to the heavily indebted Dubai World and its troubled property unit Nakheel, which is due to pay back $4bn on an Islamic bond on December 14.

Dubai also launched a restructuring of the government holding company, which oversees ports operator DP World, the UK-based P&O Ferries and troubled investment company Istithmar. Nakheel, the developer behind the city’s Palm Islands that boast celebrity owners such as David Beckham, has had to shed thousands of staff and left contractors out of pocket as local property prices halved and credit dried up.

A symbol of Dubai’s pre-crunch excess, the government company has had to cancel plans for the world’s tallest tower and a constellation of reclaimed islands, as collapsing cash flow left the developer on the brink.

http://www.ft.com/cms/s/0/46b4065c-d9f7-11de-b2d5-00144feabdc0.html
More...



pretty confusing situation. Need more info.


Although on the face of it Dubai has always looked like an accident waiting to happen.


I mean it's in a bloody dessert next to Iran. The Vegas of the Middle East:D
 
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