Dubai crisis affects over 2 Lakh Indian workers
The Associated Chambers of Commerce and Industry of India (Assocham)
said that over two lakh Indian workers, mainly those working in real
estate and construction business, in the Gulf state are likely to be
affected by the recent....
expresses concern over crisis in Gulf
Dubai's government has said it has received $10bn from Abu Dhabi to
help it repay an Islamic bond and fund the troubled property
developer Dubai World.
The announcement on Monday came on the same day Nakheel, the
property development unit of Dubai World, was due to settle the
The move by Abu Dhabi follows weeks of uncertainty in Gulf stock
markets after Dubai World said on November 25 that it needed more
time to pay $26bn in debt.
Dan Nolan, Al
Jazeera's correspondent at the Gulf Co-operation Council summit in
Kuwait City, said that while it had been expected that Abu Dhabi
would help its Emirati neighbour, the scale of the assistance was a
'Nothing for Abu Dhabi'
"Nobody was expecting that this $4.1bn Islamic bond that was
maturing today would actually be paid in full," he said.
"Abu Dhabi said just a few days after this story broke that they
would not be writing any blank cheques, and that they would be
choosing when and where they wanted to assist.
"What has been announced so far has not involved any obligations on
Dubai to Abu Dhabi. Abu Dhabi will get nothing from this, other than
stabilising Dubai when it was needed."
Sheikh Ahmed bin Saaed al-Maktoum, the chairman of the Dubai Supreme
Fiscal Committee, earlier said in a statement: "The government of
Abu Dhabi has agreed to fund $10bn to the Dubai Financial Support
Fund that will be used to satisfy a series of upcoming obligations
on Dubai World."
"As a first action for the new fund, the government of Dubai has
authorised $4.1bn to be used to pay the sukuk [Islamic
certificate] obligations that are due today."
Dubai's stock market opened up 10.10 per cent on Monday, after news
of Abu Dhabi's grant was announced.
The yen fell sharply against other currencies on the news, while the
US dollar increased to 88.90 yen and the euro also jumped to 130.43
Hong Kong's Hang Seng index rose in the last minutes of morning
trade to finish in positive territory, while other markets across
Asia also received a boost.
"We are here today to reassure investors, financial and trade
creditors, employees, and our citizens that our government will act
at all times in accordance with market
principles and internationally accepted business practices," al-Maktoum
said in the statement.
"Dubai is, and will continue to be, a strong and vibrant global
financial centre. Our best days are yet to come."
Any excess funds from Abu Dhabi's grant would help cover Dubai
World's obligations up until the end of April 2010, the statement
Dubai has announced a bankruptcy law that can be invoked if Dubai
World and creditors fail to reach an agreement on debt maturing in
"Dubai will announce a comprehensive reorganisation law, a framework
that is based upon internationally accepted standards for
transparency and creditor protection," al-Maktium said in the
"This law will be available should Dubai World and its subsidiaries
be unable to achieve an acceptable restructuring of its remaining
The assistance provided to Dubai by Abu Dhabi, the largest member of
the United Arab Emirates federation, is an attempt to stabilise
regional markets and reassure potential investors that the UAE as a
whole is on a sound financial footing, Nolan said.
"Since this news [of Dubai World's defaults] first broke a few weeks
ago, Abu Dhabi's stock markets have been hammered just as badly as
"All of the Gulf nations have been affected. At the Gulf
Co-operation Council summit in Kuwait there will be some happy
faces, because they have a vested interest in Dubai - not only in
terms of their own stock markets, but also because of the future
financing of their own projects that are in the pipeline."