Dubai

by JW on December 1, 2009


There was an extraordinary outburst from normally tedious burbler Burin Kantabutra in the letters page of the Bangkok Post yesterday – really, the authentic voice of the right is most clear when crowing about the misfortune of other people. Really an extraordinary, hate-filled rant (of course aimed at Khun Thaksin, whom he seemed to blame for the financial troubles in Dubai, possibly because of some karmic retribution for the UAE government’s acceptance (in line with most of the governments of the world) that the two-year prison sentence is of questionable integrity.

I suppose we should be grateful he seems to have stopped trying to shoehorn the quote a day nonsense into the issue of the moment.

As for Dubai itself, it was always likely that hubris might tend to lead some people to overstretch themselves and, in one of the inevitable crashes to which capitalism is prone, come something of a cropper. Restructuring is likely. Presumably there will be some kind of bail out, if required, by the Abu Dhabi authorities, with some change in political influence resulting therefrom. What people said when I lived in Abu Dhabi was that 40% of all oil income was directed through the Abu Dhabi Investment Agency (ADIA) into a highly diversified portfolio of international investments. It was said that so much money had already been secured that there would never be any need for any AD citizen to work again. Of course, this is all rumour and gossip and who knows how true that might be.

In any case, the Stock Exchange of Thailand (SET) does not appear to be too concerned – shares opened 1% higher this morning.

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