I’d been wondering about this for a few years

by on December 15, 2007 at 10:26 pm in Current Affairs | Permalink

Dubai is on a spending spree, and financial analysts are starting to wonder about the amount of debt the city-state is racking up.  Its oil production is dwindling, and its debt load is four times the average among other Persian Gulf states.  Credit-rating companies are asking for more information to determine how sound the government really is…"The transparency isn’t good."

Here is the article and related links.  If I had to "sell short" one country or city-state in the world today, it would be Dubai.

Raul December 15, 2007 at 11:13 pm

The article mentions the (much worse) US debt/GDP only in passing.

“sell-short” there too? Why the ultra-qualified “average among other Persian Gulf states. “

Alex J. December 16, 2007 at 12:39 pm

Building the tallest building in the world (or trying to) is about the strongest short-selling signal for a country that you can get.

selina December 16, 2007 at 3:33 pm

I visited there this autumn, and said to myself `is this real?’ The city
has just shopaholics and malls. I felt not easy there for a moment.

bartman December 16, 2007 at 6:27 pm

Thayne:

They are building a subway/light rail system, with speed that is stunning by Western standards. Google “Dubai metro”.

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