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Dubai and the Global Crisis (37 photos)
Just one year after the global crisis has affected the growth of Dubai, the city is so mired in debt that asks a six-month delay in the payment of invoices. This affected the global markets on Thursday and called into question the reputation of Dubai as a magnet for international investment.
The consequences were discovered and quickly spread to the whole world on Wednesday after the announcement that the main "engine" of Dubai «Dubai World» asked creditors to delay debt payments at $ 60 billion, at least until May. Branch of the company, the head of real estate, - «Nakheel», whose projects include the island in the Gulf of Mexico in the form of palm trees, took over part of the money due to banks, investment companies and developers.
In general, the state network called «Dubai Inc.» $ 80 billion in debt, and earlier this year, Emirates needed help neighbor Abu Dhabi - the capital of the United Arab Emirates. Dubai has become the biggest victim of the credit crisis a year ago. But its ruler, Sheikh Mohammed bin Rashid Al Maktoum constantly denies rumors of liquidity city-state.
Questions about the debt he assured reporters two months ago that "we have everything in order," and that "we are not worried," without disclosing plans for economic recovery, if such plans existed at all.
And then, in November, he told Dubai critics to "shut up».
After months of denying the fact that the economic crisis is somehow touched the pathos of the city-state, the government of Dubai has shown signs of a struggle with the economic crisis. As a result, dozens of projects have been frozen, and there were mass layoffs.
Last week, Sheikh Mohammed fired several important members of the elite corporations Dubai and appointed to their positions of members of his family, including his two sons, one of whom is appointed heir of Mohammed.
1. Multi-family houses on an artificial island "Palm Jumeirah", also known as Palm Island, built by developer «Nakheel PJSC» in Dubai, United Arab Emirates, on Monday 30 November, 2009. Dubai's government says it does not guarantee the debt of the holding company gosudartsva «Dubai World», mired in debt of 59 million dollars, and that creditors must help it restructure. (Matilde Gattoni / Bloomberg)
2. Place the construction company «Nakheel PJSC» artificial Palm Island in Dubai, United Arab Emirates, on Monday 30 November, 2009. (Matilde Gattoni / Bloomberg)
3. The tallest building in the world - Burg Dubai - 80 meters November 23, 2009 in Dubai, UAE. Dubai has requested a delay in the payment of the debt of 36 million pounds. Sheikh Mohammed bin Rashid Al Maktoum is currently in Abu Dhabi for talks aimed at a bail. (Photo by Mike Hewitt / Getty Images)
4. Sea area of construction on the Palm Jumeirah in Dubai, UAE, on Monday 30 November, 2009. (Matilde Gattoni / Bloomberg)
5. Place the construction company «Nakheel PJSC» artificial Palm Island in Dubai, United Arab Emirates, and Monday, Nov. 30, 2009. (Matilde Gattoni / Bloomberg)
6. Type the new artificial island - "Peace" - an aerial view of Dec. 17, 2005 in Dubai, UAE. (Photo by Chris Jackson / Getty Images)
7. Place the construction on the Palm Jumeirah in Dubai, United Arab Emirates, on Monday 30 November, 2009. (Matilde Gattoni / Bloomberg)
8. Let the construction site on the Palm Jumeirah in Dubai, United Arab Emirates, on Monday 30 November, 2009. (Matilde Gattoni / Bloomberg)
9. Before the tournament «Dubai Duty Free Men's Open» American tennis legend Andre Agassi and top-ranked Swiss Roger Federer could not resist the temptation to play a friendly match at the unique world court - on-site helicopter landing in one of the most luxurious hotels in the world Burj Al -Arab February 22, 2005 in Dubai, UAE. Towering 321 meters on an artificial island, the Burj Al Arab, undoubtedly the most famous hotel in the world. Area off and landing of helicopters at an altitude of 211 meters has an area of 415 square meters. m. (Mike Hewitt for Dubai Duty Free via Getty Images)
10. Roger Federer launches the ball with the most unique tennis court in the world (located at the site for the takeoff of helicopters), while Andre Agassi looks with the most luxurious hotel in the world February 22, 2005 in Dubai, UAE. (Getty Images for Dubai Duty Free)
11. General view of the villa during the International Polo match in Dubai at the club «Desert Palm Polo Club» March 30, 2007 in Dubai, UAE. (Chris Jackson / Getty Images for Cartier)
12. Pakistani expat playing cricket during a break at the construction site December 3, 2007 in Dubai, UAE. Pakistani and Indian workers form the bulk of the workforce, which in recent years has turned Dubai into a futuristic city, which now boasts the tallest buildings in the world. (Chris Jackson / Getty Images)
13. The sun sets behind the famous hotel Burj Al Arab November 23, 2009 in Dubai, UAE. Dubai has requested a delay in the payment of the debt of 36 million pounds. Sheikh Mohammed bin Rashid Al Maktoum is currently in Abu Dhabi for talks aimed at a bail. (Photo by Mike Hewitt / Getty Images)
14. Indian workers install a billboard late at night in front of famous buildings Emirates Towers December 3, 2007 in Dubai, UAE. (Chris Jackson / Getty Images)
15. People relax on the sun loungers on the roof of the house, from which one can see the tallest building in the world - Burj Dubai - December 4, 2007. (Chris Jackson / Getty Images)
16. View from the bird's-eye view on the artificial island of Palma Dzhumeray, also known as Palm Island built by «Nakheel PJSC» in Dubai. «Nakheel» - development company based in Dubai is in talks with the parent company «Dubai World» of Islamic bonds in 3, 52 billion. Dollars, which will come into force on 14 December. (Nakheel via Bloomberg)
17. Young people go to the mosque to pray, in Dubai on Tuesday, August 5, 2008. (Shawn Baldwin / The New York Times)
18. Working cleans the statue fountain in the lobby, "Poseidon" with a huge aquarium in the hotel "Atlantis", which is part of the 1, 5 billion resort on the Palm Jumeirah in Dubai, United Arab Emirates, on Wednesday 17 September, 2008. The resort is a 45-hectare artificial island was opened on September 24. (AP Photo / Kamran Jebreili)
19. Passer photographed on a mobile phone is the tallest building in the world - Burj Dubai, towering over the area of Business Bay in Dubai, United Arab Emirates, on Tuesday 24 November, 2009. Dubai, whose government and state-owned companies borrowed $ 80 billion to create an economic boom, raised $ 5 billion by selling bonds after the credit crisis hit the private property and finance industries. (Charles Crowell / Bloomberg)
20. Girls are photographed at a club in Dubai on Wednesday 20 August, 2008. (Shawn Baldwin / The New York Times)
21. Abu Hamza Xanadu (right) with friends smokes in an expensive bar in Dubai on Monday 25 August, 2008. (Shawn Baldwin / The New York Times)
22. Dubai celebrates the magnificent opening of the hotel "Atlantis" at the Palm Resort Palm Jumeirah amazing fireworks and illuminations November 20, 2008 in Dubai, UAE. (Clive Brunskill / Getty Images for Atlantis, The Palm)
23. Multi skyscrapers dominate the Jumeirah Beach November 23, 2009 in Dubai, UAE. (Photo by Mike Hewitt / Getty Images)
24. The tallest building in the world - Burg Dubai - is 800 meters. Photo taken on 23 November 2009 in Dubai, UAE. (Mike Hewitt / Getty Images)
25. Mall in downtown Dubai November 23, 2009 in Dubai, UAE. Dubai has requested a delay in the payment of the debt of 36 million pounds. Sheikh Mohammed bin Rashid Al Maktoum is currently in Abu Dhabi for talks aimed at a bail.
26. cranes towering over a building under construction in the area of Business Bay in Dubai, United Arab Emirates, on Tuesday 24 November, 2009.
27. Airplane rides on the runway at the International Airport of Dubai in the United Arab Emirates on Tuesday 24 November, 2009. Dubai, whose government and state-owned companies borrowed $ 80 billion to create an economic boom, raised $ 5 billion by selling bonds after the credit crisis hit the private property and finance industries. (Charles Crowell / Bloomberg)
28. Children ride on a Ferris wheel in a park in Dubai Safa against the backdrop of the city's skyscrapers on Monday 30 November, 2009. (AP Photo / Kamran Jebreili)
29. Emirati family in the park «Festival City» during the Muslim holiday of Eid al-Adha in the evening November 27, 2009. World stock markets fall, and oil prices are plummeting. Dubai made a shocking request for deferment of debt the state company «Dubai World». (KARIM SAHIB / AFP / Getty Images)
30. People play golf on the background of skyscrapers Palm Island in Dubai, UAE, on Friday 27 November, 2009. On Friday, investors refrained from risky investments and canceled their shares in Asian banks and construction companies, fearing that defaulted debt of Dubai can resume repeated chaos of the credit crisis. (AP Photo / Kamran Jebreili)
31. The construction site of the tallest building in the world - Burj Dubai - December 11, 2005 in Dubai, UAE. (Chris Jackson / Getty Images)
32. Aerial view of the hotel, the Burj Al Arab in Dubai. (DAVID CANNON / AFP / Getty Images)
33. Birds fly over the skyscrapers of the tallest building in the world - Burj Dubai - which is still under construction November 27, 2009. (KARIM SAHIB / AFP / Getty Images)
34. A new network of underground passes on Sheikh Zayed Road in Dubai. The shock of the decision to ask for a postponement of Dubai debt leaked to the world markets and caused the weakening of the Islamic associations. The decision to restructure the state fund «Dubai World» and a petition for a stay of at least six months of debt also gave rise to fears of the effect of "dominoes" among all public corporations with debt, pushing the appropriate agency to compile the debt rating of the company in Dubai. (KARIM SAHIB / AFP / Getty Images)
35. Arab hookah smoking customers after the end of Ramadan in a five star hotel in Dubai September 16, 2008. In addition to the month of Ramadan charity banquets for the poor can be seen expensive tents, offers luxury food at relatively low prices, attracting so locals and foreigners, Muslims and adherents of other faiths, many of whom prefer their "normal" iftar dinners at sunset and suhoor and shisha at night. (MARWAN NAAMANI / AFP / Getty Images)
36. Managing the ferry is resting on a traditional wooden boat (dhow) in the sea in the Bay of Dubai, UAE. Everything - from trucks and electronics to fruit and camels - is transported by dhows of different sizes from the Persian Gulf port, which is trying to restore its former status of a tourist resort for Europeans and Arabs. (Glenn Asakawa, The Denver Post)
37. Two people are on Jumeirah beach near the hotel Burj Al Arab in Dubai at sunset November 18, 2009. (MARWAN NAAMANI / AFP / Getty Images)
The consequences were discovered and quickly spread to the whole world on Wednesday after the announcement that the main "engine" of Dubai «Dubai World» asked creditors to delay debt payments at $ 60 billion, at least until May. Branch of the company, the head of real estate, - «Nakheel», whose projects include the island in the Gulf of Mexico in the form of palm trees, took over part of the money due to banks, investment companies and developers.
In general, the state network called «Dubai Inc.» $ 80 billion in debt, and earlier this year, Emirates needed help neighbor Abu Dhabi - the capital of the United Arab Emirates. Dubai has become the biggest victim of the credit crisis a year ago. But its ruler, Sheikh Mohammed bin Rashid Al Maktoum constantly denies rumors of liquidity city-state.
Questions about the debt he assured reporters two months ago that "we have everything in order," and that "we are not worried," without disclosing plans for economic recovery, if such plans existed at all.
And then, in November, he told Dubai critics to "shut up».
After months of denying the fact that the economic crisis is somehow touched the pathos of the city-state, the government of Dubai has shown signs of a struggle with the economic crisis. As a result, dozens of projects have been frozen, and there were mass layoffs.
Last week, Sheikh Mohammed fired several important members of the elite corporations Dubai and appointed to their positions of members of his family, including his two sons, one of whom is appointed heir of Mohammed.
1. Multi-family houses on an artificial island "Palm Jumeirah", also known as Palm Island, built by developer «Nakheel PJSC» in Dubai, United Arab Emirates, on Monday 30 November, 2009. Dubai's government says it does not guarantee the debt of the holding company gosudartsva «Dubai World», mired in debt of 59 million dollars, and that creditors must help it restructure. (Matilde Gattoni / Bloomberg)
2. Place the construction company «Nakheel PJSC» artificial Palm Island in Dubai, United Arab Emirates, on Monday 30 November, 2009. (Matilde Gattoni / Bloomberg)
3. The tallest building in the world - Burg Dubai - 80 meters November 23, 2009 in Dubai, UAE. Dubai has requested a delay in the payment of the debt of 36 million pounds. Sheikh Mohammed bin Rashid Al Maktoum is currently in Abu Dhabi for talks aimed at a bail. (Photo by Mike Hewitt / Getty Images)
4. Sea area of construction on the Palm Jumeirah in Dubai, UAE, on Monday 30 November, 2009. (Matilde Gattoni / Bloomberg)
5. Place the construction company «Nakheel PJSC» artificial Palm Island in Dubai, United Arab Emirates, and Monday, Nov. 30, 2009. (Matilde Gattoni / Bloomberg)
6. Type the new artificial island - "Peace" - an aerial view of Dec. 17, 2005 in Dubai, UAE. (Photo by Chris Jackson / Getty Images)
7. Place the construction on the Palm Jumeirah in Dubai, United Arab Emirates, on Monday 30 November, 2009. (Matilde Gattoni / Bloomberg)
8. Let the construction site on the Palm Jumeirah in Dubai, United Arab Emirates, on Monday 30 November, 2009. (Matilde Gattoni / Bloomberg)
9. Before the tournament «Dubai Duty Free Men's Open» American tennis legend Andre Agassi and top-ranked Swiss Roger Federer could not resist the temptation to play a friendly match at the unique world court - on-site helicopter landing in one of the most luxurious hotels in the world Burj Al -Arab February 22, 2005 in Dubai, UAE. Towering 321 meters on an artificial island, the Burj Al Arab, undoubtedly the most famous hotel in the world. Area off and landing of helicopters at an altitude of 211 meters has an area of 415 square meters. m. (Mike Hewitt for Dubai Duty Free via Getty Images)
10. Roger Federer launches the ball with the most unique tennis court in the world (located at the site for the takeoff of helicopters), while Andre Agassi looks with the most luxurious hotel in the world February 22, 2005 in Dubai, UAE. (Getty Images for Dubai Duty Free)
11. General view of the villa during the International Polo match in Dubai at the club «Desert Palm Polo Club» March 30, 2007 in Dubai, UAE. (Chris Jackson / Getty Images for Cartier)
12. Pakistani expat playing cricket during a break at the construction site December 3, 2007 in Dubai, UAE. Pakistani and Indian workers form the bulk of the workforce, which in recent years has turned Dubai into a futuristic city, which now boasts the tallest buildings in the world. (Chris Jackson / Getty Images)
13. The sun sets behind the famous hotel Burj Al Arab November 23, 2009 in Dubai, UAE. Dubai has requested a delay in the payment of the debt of 36 million pounds. Sheikh Mohammed bin Rashid Al Maktoum is currently in Abu Dhabi for talks aimed at a bail. (Photo by Mike Hewitt / Getty Images)
14. Indian workers install a billboard late at night in front of famous buildings Emirates Towers December 3, 2007 in Dubai, UAE. (Chris Jackson / Getty Images)
15. People relax on the sun loungers on the roof of the house, from which one can see the tallest building in the world - Burj Dubai - December 4, 2007. (Chris Jackson / Getty Images)
16. View from the bird's-eye view on the artificial island of Palma Dzhumeray, also known as Palm Island built by «Nakheel PJSC» in Dubai. «Nakheel» - development company based in Dubai is in talks with the parent company «Dubai World» of Islamic bonds in 3, 52 billion. Dollars, which will come into force on 14 December. (Nakheel via Bloomberg)
17. Young people go to the mosque to pray, in Dubai on Tuesday, August 5, 2008. (Shawn Baldwin / The New York Times)
18. Working cleans the statue fountain in the lobby, "Poseidon" with a huge aquarium in the hotel "Atlantis", which is part of the 1, 5 billion resort on the Palm Jumeirah in Dubai, United Arab Emirates, on Wednesday 17 September, 2008. The resort is a 45-hectare artificial island was opened on September 24. (AP Photo / Kamran Jebreili)
19. Passer photographed on a mobile phone is the tallest building in the world - Burj Dubai, towering over the area of Business Bay in Dubai, United Arab Emirates, on Tuesday 24 November, 2009. Dubai, whose government and state-owned companies borrowed $ 80 billion to create an economic boom, raised $ 5 billion by selling bonds after the credit crisis hit the private property and finance industries. (Charles Crowell / Bloomberg)
20. Girls are photographed at a club in Dubai on Wednesday 20 August, 2008. (Shawn Baldwin / The New York Times)
21. Abu Hamza Xanadu (right) with friends smokes in an expensive bar in Dubai on Monday 25 August, 2008. (Shawn Baldwin / The New York Times)
22. Dubai celebrates the magnificent opening of the hotel "Atlantis" at the Palm Resort Palm Jumeirah amazing fireworks and illuminations November 20, 2008 in Dubai, UAE. (Clive Brunskill / Getty Images for Atlantis, The Palm)
23. Multi skyscrapers dominate the Jumeirah Beach November 23, 2009 in Dubai, UAE. (Photo by Mike Hewitt / Getty Images)
24. The tallest building in the world - Burg Dubai - is 800 meters. Photo taken on 23 November 2009 in Dubai, UAE. (Mike Hewitt / Getty Images)
25. Mall in downtown Dubai November 23, 2009 in Dubai, UAE. Dubai has requested a delay in the payment of the debt of 36 million pounds. Sheikh Mohammed bin Rashid Al Maktoum is currently in Abu Dhabi for talks aimed at a bail.
26. cranes towering over a building under construction in the area of Business Bay in Dubai, United Arab Emirates, on Tuesday 24 November, 2009.
27. Airplane rides on the runway at the International Airport of Dubai in the United Arab Emirates on Tuesday 24 November, 2009. Dubai, whose government and state-owned companies borrowed $ 80 billion to create an economic boom, raised $ 5 billion by selling bonds after the credit crisis hit the private property and finance industries. (Charles Crowell / Bloomberg)
28. Children ride on a Ferris wheel in a park in Dubai Safa against the backdrop of the city's skyscrapers on Monday 30 November, 2009. (AP Photo / Kamran Jebreili)
29. Emirati family in the park «Festival City» during the Muslim holiday of Eid al-Adha in the evening November 27, 2009. World stock markets fall, and oil prices are plummeting. Dubai made a shocking request for deferment of debt the state company «Dubai World». (KARIM SAHIB / AFP / Getty Images)
30. People play golf on the background of skyscrapers Palm Island in Dubai, UAE, on Friday 27 November, 2009. On Friday, investors refrained from risky investments and canceled their shares in Asian banks and construction companies, fearing that defaulted debt of Dubai can resume repeated chaos of the credit crisis. (AP Photo / Kamran Jebreili)
31. The construction site of the tallest building in the world - Burj Dubai - December 11, 2005 in Dubai, UAE. (Chris Jackson / Getty Images)
32. Aerial view of the hotel, the Burj Al Arab in Dubai. (DAVID CANNON / AFP / Getty Images)
33. Birds fly over the skyscrapers of the tallest building in the world - Burj Dubai - which is still under construction November 27, 2009. (KARIM SAHIB / AFP / Getty Images)
34. A new network of underground passes on Sheikh Zayed Road in Dubai. The shock of the decision to ask for a postponement of Dubai debt leaked to the world markets and caused the weakening of the Islamic associations. The decision to restructure the state fund «Dubai World» and a petition for a stay of at least six months of debt also gave rise to fears of the effect of "dominoes" among all public corporations with debt, pushing the appropriate agency to compile the debt rating of the company in Dubai. (KARIM SAHIB / AFP / Getty Images)
35. Arab hookah smoking customers after the end of Ramadan in a five star hotel in Dubai September 16, 2008. In addition to the month of Ramadan charity banquets for the poor can be seen expensive tents, offers luxury food at relatively low prices, attracting so locals and foreigners, Muslims and adherents of other faiths, many of whom prefer their "normal" iftar dinners at sunset and suhoor and shisha at night. (MARWAN NAAMANI / AFP / Getty Images)
36. Managing the ferry is resting on a traditional wooden boat (dhow) in the sea in the Bay of Dubai, UAE. Everything - from trucks and electronics to fruit and camels - is transported by dhows of different sizes from the Persian Gulf port, which is trying to restore its former status of a tourist resort for Europeans and Arabs. (Glenn Asakawa, The Denver Post)
37. Two people are on Jumeirah beach near the hotel Burj Al Arab in Dubai at sunset November 18, 2009. (MARWAN NAAMANI / AFP / Getty Images)
