From the editorial columns of The National, the Abu Dhabi-based English language newspaper edited by former Telegraph editor Martin Newland:
A silver lining in Dubai World
…But as the dust settles, the realisation will sink in that this surprising announcement is in fact a move in the right direction. The first step in solving a problem is acknowledging there is one. Dubai World, a conglomerate whose proud motto is that the “sun never sets on Dubai World”, expanded in many areas and came to represent many ambitions. And like everyone from Florida to Iceland, it was buoyed by borrowing. The appointment of Aidan Birkett, an experienced chief restructuring officer, will help. He has assisted companies as diverse as Eurotunnel, Cable & Wireless and even the labyrinthine empire of Robert Maxwell, the Czech-born British publishing tycoon.
We should recall that it was only on June 1 that General Motors, itself once the crown jewel of American industry, sought protection from its creditors. Many feared that the firm, whose chief executive once boasted that “what is good for General Motors is good for America”, would cease making cars altogether. It emerged anew in July, streamlined and firing on all cylinders.
Something similar will happen at Dubai World. But nobody should expect a quick turnaround. Confidence is a fragile commodity, while Dubai’s property market will need time to return to its old vigour. Still, the city continues to boast of a first-class infrastructure, with a thriving financial centre and a Metro that snakes through the city. It remains a highly desirable place to live and do business. Now that it has admitted to its debt dilemma, it can begin to resolve its problems.
And here’s some up-beat reporting from the pan-UAE Gulf News – Investors show trust in Dubai:
Mohammad J. Berro, Chief Executive of Al Hilal Bank, said $500 million was released to the Dubai government by Al Hilal Bank on Wednesday. “The remainder will follow,” he added. The $5 billion tranche was fully subscribed equally by National Bank of Abu Dhabi and Al Hilal Bank.
“We have subscribed to sukuk worth $2.5 billion because Dubai has come strongly out of the financial crisis,” Berro told Gulf News. “The tenure is five years and the coupon rate is four per cent, which is a good return,” Berro added.
Emirates 24/7, based in Dubai itself, restricted itself to a straight 200 words news report and, of course, this:
Crisis? Where?
Related links:
This is a sensible business decision – FT Alphaville
The clairvoyant Nakheel short sellers – FT Alphaville
Dubai knows what you are thinking – Long Room