Dynamic Export » Dubai

New heights for Dubai amid economic strife

Adeline Teoh — Wed, 13 Jan 2010 01:49:19 +0000

The world’s tallest building, the Burj Khalifa, has opened in Dubai. Chairman of the Australia Arab Chamber of Commerce and Industry (AACCI) Ray Najar said it was testament to the underlying economic strength and internal political cohesion of the United Arab Emirates.

Najar confirmed that the UAE was still a sound market for Australian businesses despite recent economic setbacks. “Recent trade statistics show that the UAE is Australia’s 13th largest merchandise export market, and there is no reason why the significance of the UAE market should not grow for Australian business in the near term.”

He expressed confidence in Dubai, and the UAE’s financial and economic resilience and said the chamber would continue to run trade missions there in 2010, including lesser known emirates other than Dubai and capital Abu Dhabi.

The building’s name was the Burj Dubai while under construction. It stands at 828 metres.

European financial markets tumble

Erin Delaney — Wed, 09 Dec 2009 00:36:08 +0000

The European financial markets took a nosedive overnight, exacerbating earlier losses as traders hesitated due to concerns about the Dubai crisis and another credit downgrade for Greece.

“It is apparent that Dubai’s issues are not yet properly assessed, let alone dealt with,” said David Morrison, analyst with trading firm GFT. “On top of this, Greece’s credit downgrade brings other eurozone countries back into focus – Ireland and Spain – which has pressured the euro.”

European banking shares slid overnight as markets fretted about the sector’s exposure to Dubai. At the same time, Greece was hit by a second blow to its credit rating overnight, marking falling confidence in its economic policy, and raising the prospect of crisis budget measures and increasing strains in the eurozone.

Credit rating agency Fitch downgraded Greek long-term debt ratings, hours after Standard & Poor’s warned it could take the same step if the new government did not take aggressive action to slash the huge public deficit.

Morrison said traders were running for cover due to “concerns of a sovereign debt default”.

Dubai economy teeters as world watches

Adeline Teoh — Sun, 29 Nov 2009 23:27:54 +0000

Dubai, until recently one of the most prosperous nations of the United Arab Emirates, has fallen into economic trouble. The state-owned company Dubai World has requested an extension to its debt repayment of US$59 billion, an amount representing almost three quarters of the debt of the entire emirate.

The Dubai Government last week sought a delay to the debt repayments in hope of restructuring Dubai World: “Dubai World intends to ask all providers of financing to Dubai World and Nakheel to ‘standstill’ and extend maturities until at least 30 May 2010.”

The implications are far-reaching, with Dubai World operating in Australia through DP World, which controls a significant portion of Australia’s ports sector, and with large Australian operations such as Leighton Holdings established there.

According to Reuters, a government spokesperson from neighbouring emirate Abu Dhabi suggested they would assist Dubai “on a case-by-case basis”. He added: “It does not mean that Abu Dhabi will underwrite all of their debts.”