Abu Dhabi is keeping a silence ever since the report of the crisis has started. Some people think that Abu Dhabi may come for the rescue of Dubai while others have different opinions. Dubai might be escaped from the current crisis; but the damages caused by the current crisis have spoiled the image of Dubai and more time needed Dubai to regain the lost confidence of investors in Dubai ventures.
The article concluded that it is difficult for Dubai to regain its lost face even if they were able to come out of the crisis. The article also concludes that Abu Dhabi has a major role in solving the Dubai crisis.
The article beautifully explained the pros and cons of the current Dubai crisis. The article has ridiculed the existing Dubai governmental functioning. Moreover, it is indirectly blaming the foolish lending habits of some of the foreign financial institutions from Britain and Europe. The article was not sure about the Abu Dhabi’s tactics in the current Dubai crisis, even though it identifies Abu Dhabi as the probable savior of Dubai.
FOR years, Dubai strove to capture the imagination of the financial world, projecting its young financial centre as a “global gateway” for capital. Last week it succeeded in grabbing attention. Its announcement that it would delay repayment of the debts of Dubai World, a vast government-owned conglomerate, swept through global markets like one of the blinding sandstorms that occasionally afflict the emirate, obscuring the gleam of its skyscrapers.
Like those storms, Dubai’s announcement was so damaging because it reduced visibility. Investors had assumed that the Dubai government was willing to rescue the indebted conglomerates it sponsors, and that Abu Dhabi, its well-heeled neighbouring emirate, was willing, in turn, to rescue Dubai. In particular, they had looked forward to the full and timely repayment of a $3.5 billion Islamic bond issued by Nakheel, a Dubai World subsidiary, on December