AMEDEO DEBACLE is nothing compared to panicky news that Dubai World may see troubling days ahead… but I doubt that this modern day Golden Oasis of the United Arab Emirates will crumble anytime soon — not by a long shot!
There is just too much at stake for the Islamic Financial World, particularly the Islamic Banking System, to let the multi-billion dollar dream of Dubai City to fall into pieces, just like that. The state-run Dubai World stunned the global financial world last Thursday when it announced it would need to restructure its debt, estimated at $59 billion, to pre-empt default and asked creditors for a six-month deferment.
The conglomerate has a host of companies under its fold with interests in a wide range of businesses such as realty, infrastructure, logistics and economic zones. It operates not just in the region but across a clutch of countries including Britain, the US, Europe, India, etc.
The total debt of Dubai as an emirate is estimated at $80 billion. And it’s banking on oil-rich Emiratey neighbour, Abu Dhabi, to come to its rescue…
A huge lotta money, of course. But wealthy friendly Islamic countries should pull their financial resources together to ensure that the Palm Islands dreams still remain afloat in the Arabian Gulf… All Sheikh Mohammed bin Rashid Al-Maktoum has to do is pick up his phone and call on Prince Waleed for expert advice or better still seek a much more experienced guidance from His Majesty? 😉
No worries! Doom or gloom, it’s still a Wonderful World! 🙂