The revelation that Dubai World is seeking to reach a standstill agreement with its creditors will dent fragile confidence in a region tarnished by a reputation for lack of transparency.
It will also heap more speculation on the relationship between Dubai and Abu Dhabi, the financial and political powerhouse of the United Arab Emirates, which was considered by some to be the guarantor of the federation’s poorer brethren.
Investors traditionally accepted implicit guarantees that Gulf governments would not allow a related entity to default on its debt.
Well I guess the recession is still not over yet. I think more problem will start to surface
ReplyDelete