Dubai is facing problems to refinance its massive debt; hires economic advisers

Dubai is facing problems to refinance its massive debt as access to the global credit market becomes increasingly difficult. Plunging oil prices also threaten Mid-Eastern Countries with budget deficit.

According to the Wall Street Journal today, the Government has hired financial advisers to review emirate’s economy amid a global credit crunch. But the official declined to describe the details.

Moreover, The Financial crisis in Dubai was due to investors pulled their fund because they did not benefited from margin spread anymore since The Mid-Eastern Countries took no action to their own benchmark rate as investors expected. Fleeing investors from The Mid-Eastern leaved banks in rush and property bubble burst.

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The global financial storm rolled across the Persian Gulf

Sources :

The Wall Street Journal: Dubai Hires Economic Advisers, November 17, 2008, 10:38 A.M. ET

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