Archive for November 28th, 2009

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Dubai’s Request For Debt ‘Standstill’ Shakes World Markets

November 28, 2009

DUBAI, United Arab Emirates — Just a year after the global downturn derailed Dubai’s explosive growth, the city is now so swamped in debt that it’s asking for a six-month reprieve on paying its bills – causing a drop on world markets Thursday and raising questions about Dubai’s reputation as a magnet for international investment.

The fallout came swiftly and was felt globally after Wednesday statement that Dubai’s main development engine, Dubai World, would ask creditors for a “standstill” on paying back its $60 billion debt until at least May. The company’s real estate arm, Nakheel – whose projects include the palm-shaped island in the Gulf – shoulders the bulk of money due to banks, investment houses and outside development contractors.

http://www.huffingtonpost.com/2009/11/26/dubai-request-for-debt-st_n_371852.html