Dubai Rumors

With the stock markets bouncing around like ping pong balls and every body waiting with baited breath to see if Abu Dhabi steps in with a bailout (they are certain to), the rumor mill is working overtime. One rumor that seems to be coming true is that Abu Dhabi insisted the Burj Dubai sit empty for a year as a penalty for over bearing brashness. This was reported back in April this year and Burj Dubai sits empty still. This was apparently after Abu Dhabi was forced to buy $10 billion in Dubai bonds, so who knows what “penalties,’ will be applied this time if the bailout is a big as I suspect it is going to need to be.  But – rumors abound and here are a few juicy ones, mixed with a little, “The Dubai problem is a small issue that will not affect the rest of the world,” as though BNP Paribais or Societe Generale can afford to lose another E20 billion.

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Luxury Real Estate News 30/11

The big “news” this week is obviously the Dubai situation, although we would hesitate to call it “news,” as the Dubai bubble has been obvious for some time and Dubai’s $80 billion default is just the icing on the cake. The only real surprise (to some) is Abu Dhabi’s seeming unwillingness to bail out their smaller sister. I have sneaking suspicion this is just a game on the part of Abu Dhabi and a rather large sum will be forthcoming – with strings attached. The last bail out from Abu Dhabi came with a lot of strings that has seen the Burj Dubai still unfinished and I gather that there was a requirement or “penalty” to leave it empty for a year.

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