In these straitened days Dubai’s government likes to play matchmaker and marriage bureau to troubled companies. It delights in finding secure, local spouses for unloved ventures left on the shelf by a financial crisis that hit this emirate especially hard.
Dubai’s property firms and banks were caught by a bust in which real-estate prices collapsed 50% from 2008’s boom-time peaks. Firms such as Emaar, Dubai Holding, Union Properties, Deyaar Development and Nakheel have been left with massive projects, rolled out at the top of the market but now largely unwanted.
And the lenders who part-funded this development orgy, Dubai Islamic Bank, Tamweel and Amlak, now carry significant asset quality risk, according to many analysts.
No comments:
Post a Comment