Thursday 29 December 2011

$10bn Aldar bailout mirrors Abu Dhabi’s $25 billion rescue of Dubai two years ago « ArabianMoney

The second part of a $10 billion bailout of property developer Aldar by Abu Dhabi is very much a re-run of the $25 billion rescue of Dubai two years ago. In both cases a property boom went bust leaving huge debts, half-built projects and an oversupply of real estate.

The aftermath is debts that have to be rescheduled, consolidated and assets sold down. There is also a period of cutbacks and austerity that follows a period characterized by easy money and rapid growth.


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