A stark warning from Dubai
Source: Mint
Dubai’s problems stem from the surreal happenings in real estate there, with the place being home to the world’s tallest tower and the biggest man-made islands.
The shock waves emanating from Dubai World’s attempt to reschedule its debt rocked global equity markets on Thursday. The fear was all the more because Dubai World is state-controlled, which means that effectively it’s the government that is asking for more time to repay.
Is Dubai another canary in the coal mine, just as Iceland was at the beginning of the crisis, or is it just a real-estate related problem confined to Dubai?