Dubai has not yet been rather (reprint) _greentree

Author: Dubai school of Government, research fellow, Sudan ? Sood ? Al ? card game for United Kingdom "financial times" written by 2009-12 http://www.ftchinese.com/story/001030079-03 last week, when the global media in television and network series of reports on the Dubai events that I love with torrents watching developments. This is not a good news. Dubai World (DubaiWorld) of real estate agencies Nakheel announced, is seeking to delay repayment due on December 35 billion bond. From Mexico to Brazil, Germany, United Kingdom and Australia, many markets are affected. For the financial impact of the crisis on Dubai, the world's strongest feeling at this time. Obviously, Dubai's future is no longer what it used to be. But this does not necessarily mean that it will face a terrible future. The turbulence on Wednesday, the Emirate of financial history of a major milestone, and now, a distinct Dubai will render in the world. To respond to the current situation, we must make difficult decisions. But the good news is, at present, it infrastructure and logistics area, the Middle East and other cities without a comparable to Dubai. Dubai World request "pause" debt service should not be regarded as a shock. In fact, the company in such a long time before this kind of thing surprising. The State-owned enterprise group through the worldwide expansion of the port operations and set the miracle, eventually became the world's fourth largest port operator, but 90% of world trade through the cargo transport. However, it also committed the error. Expansion to non-core business is the company to open one of the root causes of infamy. Although one might argue that the 2006 Dubai port (DubaiPorts) acquisition of United Kingdom rail line port Corporation (P & O) price is too high, but this is a strategic asset, the consolidation of the Dubai World Trade Centre. The company in 2007 to Cork ? Cork Briand (KirkKerkorian) 's beauty gaomei (MGMMirage) investment decision billion, it is not a strategic decision. This is to build the world's largest gaming facilities. Standstill of requests is not the end of the story of Dubai. Other countries have also experienced the same cycle, and ultimately to a better State. Stanford University (StanfordUniversity) Michael Tom's (Michael Tomz) and California (University ofCalifornia) Los Angeles, mark ? white (Mark l.j.wright) indicates that, in the 1980s, more than 50 countries (accounting for all the private foreign creditors borrowing countries 40%) failed to get the full amount of the debt. The study also found that some countries even in the domestic situation in good circumstances standstill, Dubai is likely to be the case. The Emirate has traditionally been more successful in the industry has demonstrated excellent. For example, the latest data show that in the past 12 months, Dubai Airport (DubaiAirport) of passenger and freight transport volume grew by 8%, respectively and 17.7%. Like the country itself, those loans to Dubai International banks may also have to swallow the bitter pill, agree on the overall debt restructuring. Dubai's error might lie: it is not a year ago such arrangements, which the Bank more affordable loan restructuring negotiations. Last year, the World Bank for a total of more than $ 500 billion write-down, New York University (New YorkUniversity) economists Rue Gabriel ? rubbini (NourielRoubini) estimates that losses will be as high as $ 2 trillion. If you have a Government background of Dubai company (DubaiInc) a year ago declared insolvent, you wouldn't be so many people's eyes. In the situation just improve on the occasion of the world for the last week the news of the overreaction to a large extent reflects an unfair emotions: "How can you do that?". In fact, Dubai leverages loose credit, will the heavy investment in developing the best infrastructure �� Eastern Mediterranean South of any emerging economies are second to none. If it is not a luxury department store and because Western other similar assets of non-strategic investments, Dubai's current situation is much better. Dubai has made a lot of hard decisions, such as action against corruption, which is the area in any one of the other cities do not dare to try. Interestingly, Dubai young Hamdan Prince (SheikhHamdan) last week in Dubai the World Economic Forum (World EconomicForum) meeting, said that he hoped that the forthcoming Copenhagen Environment Summit favourable indications, will become a binding agreement. Does this indicate that Dubai will control its environmental aspects have a controversial project? the Emirate has always been known for these projects. Today, a new Dubai has a new appearance opportunities: become more thin, more low-key, but also better. Writer is Dubai school of Government (Dubai School ofGovernment) of non-resident fellow at the translator/ liangyan skirts This is not the end of the road forDubaiBy Sultan Sooud Al Qassemi 2009-12-03http: //www.ftchinese.com/story/001030079/en I followed in horror last week me as the internationaldiacontinuously featured Dubai in their headlines on television andonline. It was not good news. Markets from Mexico and Brazil,Germany and the UK as well as Australia have all been affected bythe announcement that Nakheel, the property arm of Dubai World, isseeking to defer repayment of a $3.5bn (�2.3bn, ��2.1bn) bond due inDecember. The impact of the financial crisis on Dubai has been feltaround the world at the highest levels. It is already clear that Dubai's future is not what it used tobe. But that does not necessarily mean it is facing a bad future.Last Wednesday's convulsion marked a significant milestone in thefinancial history of the emirate, and a very different Dubai willnow take shape. To overcome the present situation, hard decisionsmust be made. But the good news is that no other city in the MiddleEast today even comes close to Dubai in terms of infrastructure andlogistics. Dubai World's request for a debt ��standstill�� should not be seenas a shock. In fact it is surprising that it took so long for it tohappen. The government-owned conglomerate did wonders by expandingits port operations across the globe, eventually turning it intothe fourth largest operator in a world where 90 per cent of tradeis conducted via cargo shipping. But mistakes were also made. The expansion into non-core activities was one of the basicfactors that led to the company's public embarrassment. Even thoughit could be argued that Dubai Ports' acquisition ofP&O in 2006 was overpriced, it was a strategicasset that consolidated Dubai's position as a trading hub. Not sowas the decision to invest $4.6bn in Kirk Kerkorian's MGM Mirage in2007 to build one of the largest gambling complexes in theworld. The ��standstill�� request is not the end of the Dubai story.Other countries have gone through the same cycle and emerged in abetter condition. In the 1980s, more than 50 countries (about 40per cent of all nations that owed money to private foreigncreditors) failed to pay in full on schedule, according to MichaelTomz of Stanford University and Mark L.J. Wright of the Universityof California, Los Angeles. Their research has also found that some countries have suspendedpayments even when domestic conditions were highly favourable,which may be the case in Dubai today. The emirate has beenperforming quite well in sectors in which it has traditionally beensuccessful. For example, according to the latest figures, DubaiAirport registered over the past 12 months an 8 per cent and a 17.7per cent increase in passenger and freight trafficrespectively. The international banks that lent to Dubai, like the emirateitself, may have to swallow a bitter pill and agree to arestructuring in the total debt. Dubai's probable mistake was thatit did not do this a year ago when these banks were more receptiveto restructuring talks. Total bank write-downs last year topped $500bn, while NourielRoubini, the New York University economist, predicted that losseswould reach $2,000bn. Had Dubai Inc announced that it would nothave been able to meet its debt obligations a year ago, it wouldnot have raised so many eyebrows. Much of the world's overreactionto last week's news reflects an unfair ��How could you?�� sentiment,when things were just getting better. The truth is, Dubai took advantage of easy credit and poured itinto developing the best infrastructure south of the MediterraneanSea in any emerging economy. Had it not been for the less strategicinvestments in luxury department stores and other similar assets inthe west, then Dubai would have been in a much better shapetoday. Dubai has already taken many tough decisions such as launchingan anti-corruption crackdown that no other city in the region hasdared to. Interestingly, Sheikh Hamdan, Dubai's young Crown Prince,told a World Economic Forum meeting in Dubai last week that hehoped that the positive signs concerning the upcoming environmentalsummit in Copenhagen would turn into binding agreements. Could thisbe a sign that Dubai will rein in the environmentally challengingprojects it is famous for? Today, a new Dubai has a chance to emerge: leaner, meaner andbetter. The writer is a non-resident fellow at the Dubai School ofGovernment