Dubai, unity and the aftermath

On the day before UAE National Day, Sheikh Mohammed bin Rashid Al Makhtoum addressed the UAE and the rest of the world. Ever the poet, he talked in metaphor of unity and reemergence:

"People try to pelt stones or anything else within their reach at a fruit bearing tree. Then how it will be when we have seven fruit-bearing trees or more? It is natural that we are exposed to all these exaggerations, which are far from reality. The diligent waves have amazing patience....amazing."



And although not worried by the hype, he chastised the media, who had dragged Dubai into the quagmire of debt conundrum. But the key point he made was this:

"This company is independant of the government"

Talking of Dubai World, this is distancing Dubai, the Emirate from the debt. Since Dubai World is the majority of the total debt, this makes sense. If DW is $60bn, say, then the rest of the debt, the true sovereign debt, is small cheese. That doesn't explain the fact that Dubai World is wholly owned by the state of Dubai. No matter, Sheikh Khalifa talked of unity ahead of UAE National Day, the magic men are restructuring the debt, and bar the billions lost on the regional markets, the world has moved on to discussion of US unemployment, GM and Obama's do or die strategic play in Afghanistan, to bring a happy UAE National Day. In the very small chance the magic men have to start hiving off Dubai World's Assets, Reuters have put together the list to help them out. Of course that wont happen

Happy National Day! UAE Forever.

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