The Lex column in the Financial Times nails it on Dubai:
Its failure to communicate decisively and promptly with the capital markets on which it relies, has left its ambition of becoming a credible financial services hub in tatters.
This further down:
There is no Plan B for Dubai, now that its cheap credit-fuelled City-in-the-desert plan has been shown to be a mirage. Without the oil revenues of Abu Dhabi, sharply curtailed credit availability, an oversupplied property market, and a tourism industry hit by the global downturn, the emirate will be cut down to size. This much will not be lost on Abu Dhabi. However, it cannot afford to let its go-go neighbour fester. A face-saving solution for both would be for the UAE to step forward with a coordinated regional plan. However the UAE, which everyone believed was a federation, has yet to show it can act like one.
Comments