Dubai’s financial difficulties do not lead to new crisis
Above is the Review of the analysts of the event Dubai World thirst for nearly 60 billion debt. Domino effect in the Gulf will not happen because other countries like Saudi Arabia, Abou Dhabi and Qatar are not credit problems as Dubai. Abou Dhabi will save Dubai.
The Dubai last Wednesday (25/11) requesting to delay the payment of tens of billions US dollars has made shocks globally, in the context of the world economy just get up from the financial crisis.
Yesterday, the stock markets continues to worry about the risk of Dubai's bankruptcy, but with different levels of response. Markets in Europe and the United States do not fall into panic, while Asian markets slip down the slope.
By Thursday's close on Thanksgiving, yesterday, the market for Wall Street impact of events in Dubai, with the Dow Jones index lost 1.48% points. But yesterday, in the Paris market, CAC 40 index, after the 3.41% drop Thursday, had regained 1.15% points and other markets of Europe also increased again.
This is because investors now realize that the banks actually not affected by the financial difficulties of Dubai. Meanwhile, the entire stock market decline in Asia are very strong, but that is because the story out of Dubai, investors still concerned about the consequences of increasing the yen so strong against the dollar .
Fewer profit from oil, but Dubai spend tens of billions USD to build all of the record-breaking real estate world. Dubai for a long time was the world admires. But now it is called "Debt Country".
Dubai's total debt to 80 billion dollars, of which 59 billion is the debt of the group Dubai World, which this country was asking for six months to delay payment. Dubai risk reminds everyone's memory to the collapse of U.S. bank Lehman Brothers in the autumn of last year.
Lehman Brothers scenario data can be recurring? Most analysts do not believe that. In their opinion, the financial difficulties of Dubai will not lead to a new crisis.
First, it will not happen in the Gulf domino effect because other countries like Saudi Arabia, Abou Dhabi and Qatar are not credit problems as Dubai. Moreover, Abou Dhabi will not neglect its neighbors, which will be launched to save money to Dubai.
Regarding the damage to the bank's largest international is currently unknown how much, but it sure is only a few dozen billion dollars, primarily damage to the Gulf Bank, which involved many the Dubai World projects.
This amount is not absorbed into the comparison with thousands of billions of dollars that banks in Europe and America have to suffer as a result of the credit crisis and subprime real estate financial crisis in 2008.
While most analysts but not really worried, but proved cautious, wait and see situation progress to where.
According to them, Dubai events remind people that the health of the global financial has not yet returned to normal. In this context, the political leadership is the effort to reassure the world that the economy has been steady enough to support the risks similar with bankruptcy risk of Dubai.
