Dubai World

Dubai World - Christopher Holt at All About Alpha

It's all hedge funds' fault – again Dust in the wind, sand through time, defunct Dubai, Dubailand gone bust: the anecdotes and analogies are endless (and beautifully illustrated in these poignant photographs taken by Lauren Greenfield as the real estate market was crumbling.) . Poor headlines aside, what has occurred once again in emerging markets, or at least in one Emirate in the emerging world, has set off what many worry could be yet another chain of unfortunate debt defaulting events affecting banks, financial markets and everything in between Does anyone remember Russia, Ukraine, Pakistan, Ecuador, Argentina, Moldova, and Uruguay, or going back even farther, Turkey? 

Dubai World - Chen Zhao at The Bank Credit Analyst Research Group

Does anyone remember Russia, Ukraine, Pakistan, Ecuador, Argentina, Moldova, and Uruguay, or going back even farther, Turkey? For hedge funds in particular, Dubai World's $59 billion problem of not quite being able to pay the interest it owes on its debt has far wider reaching ramifications Most notably it has a financial and psychological impact on investors already leery of trying to earn something more than a 2 3% return, and relying on hedge funds to follow the emerging markets wave to get it for them The conundrum is plainly and eloquently summarized in a weekly commentary published last week from noted economic research firm Bank Credit Analyst Chen Zhao, the firm's managing editor and head macro thinker, took aim at hedge funds, particularly funds of funds, noting that their ability to generate the yield investors are looking for and expecting is "is actually hard to achieve, especially in a world of zero interest rates and with enormous financial and economic uncertainties" 

Dubai World - JP Morgan

JP Morgan analysts estimated the bank's exposure to Dubai to be around two thirds of its loan book, likely to weigh on the bank's annual results which are due in February (Reuters) refered by url is , wwwarabianbusinesscom%2F580121 

Dubai World - Joice Mathew at United Securities

Joice Mathew, head of research, United Securities LLC, said: "If Dubai Holding is trying a sale of its overseas assets, Bank Muscat is one which they can sell at a premium to current market prices" He added: "The stock is trading at a discount to valuations of its domestic peers" Last week, sources told Reuters that Dubai Group, the financial services firm of Dubai Holding, was in talks to sell its 41 percent stake in Oman National Investment Corp, a sale that could garner about $90 million 

Dubai World - Deutsche Bank

The scale of Dubai World's debt was put at an eye watering US$60 billion, until Deutsche Bank analysts pointed out that the debt is approximately US$25 billion 

Dubai World - Saud Masud at UBS

This week, Arabian Business reported how the Palm Jumeirah had witnessed its first property repossession, resulting in a local Dubai bank selling an apartment for just AED745 per square foot – nearly 35 percent below the current market rate Prices in the emirate were this week forecast by UBS to fall another 30 percent from current levels as the bank believes there could be up to 150,000 units lying empty due to the oversupply in the market "We reiterate our view that by end of 2011 Dubai property oversupply on residential and commercial properties may reach roughly 40 to 50 percent and house prices may decline another 30 percent from current levels," analyst Saud Masud said in a research note 

Dubai World - Saud Masud at UBS

Last year was one to remember for investors in the Gulf's small but swelling credit markets , for good and bad reasons. Bond issuance almost quadrupled to a record $41bn, from $11bn in 2008 and the previous peak of $27bn in 2007, according to Dealogic, 

Dubai World - Business Insider

Dubai has announced that their Abu Dhabi December bail out has turned out to be half the size they expected. $5 billion rather than the $10 billion previously thought Apparently $5 billion of the $10 billion was comprised of loans to Dubai that Abu Dhabi banks had already organized before the Dubai crisis 

Dubai World - UBS

"There is a higher probability of Dubai World offering sweeteners to creditors, perhaps higher interest rates or equity swap options, for a terming out of obligations in lieu of creditors waiving legal claims to key Dubai World assets including DP World," UBS AG analysts said in a report, yesterday.  

Dubai World - Michael Wang at Morgan Stanley

Dubai that month avoided a default on $41 billion payments due for Nakheel's 2009 bond Morgan Stanley in a research report said on Thursday that the stock markets in the Gulf countries lack nearterm "triggers" to spur gains and Dubai's debt restructuring may remain a drag on the market until the second half of 2010 Higher financing costs, potential credit rating downgrades and a delayed recovery in earnings are "major overhangs" for Arab equities, Michael Wang, an emerging market strategist in London at Morgan Stanley, wrote in a research note dated on Wednesday Investors should wait until "later" in the first half of 2010 to add to holdings, he wrote 

Dubai World - Saud Masud at UBS

Burj Khalifa has a height of 828 meters (2,717 feet), Alabbar said in a telephone interview Apartment prices in the tower, formerly known as Burj Dubai, have fallen to less than half of the 10,000 dirhams ($2,700) a square foot that they reached at the 2008 peak "It may still run at a premium to the rest of the market but I'd be surprised if there were no defaults and if vacancy rates didn't creep up," since a large proportion of the developer's sales were financed through mortgages, said Saud Masud, a Dubai based analyst at UBS AG