The euro-zone sovereign debt crisis, and in particular the tortured negotiations going on between Greece and international financial institutions, has been followed closely in the Middle East, for several reasons.
First, the trials in European finances coincided almost exactly with this region's very own debt crisis, sparked by the restructuring announcement by Dubai World in November 2009.
There was no cause and effect here. Dubai's problems were linked to a property bubble rather than to excessive government spending; and it was less "sovereign" in nature. (Dubai has no sovereign rating.) But for a while the financial world was thinking simultaneously about debt in Dubai as well as in Europe.
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