Tuesday, 8 December 2009

MINDIA: Migrant workers from India are going to be hit real hard by the Dubai debacle

A sudden halt to Dubai's real estate boom has come with the country's defaults on huge debts to global creditors. It has flustered the confidence of the investors across the Gulf region. The government of Dubai on November 25, 2009 said that it would ask all creditors of Dubai World and Nakheel to "standstill" and extend their loan agreements by six months. This revelation sent shock waves to the Sensex world. Stock exchanges all over the world tumbled after this, including Bombay Stock Exchange.

Dubai World is a large government-owned corporation with an enormous portfolio, ranging from interests in ports to property and diamonds, involving thousands of workers and professionals. Its most well-known companies are Dubai Ports World, one of the largest owners of ports in the world, and Nakheel, a property developer that created the swanky The Palm Islands, The World and The Waterfront for the super rich. Also an Islamic bond, known as sukuk, with a face value of $3.52 billion is due to come on December 14. Read more

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