Debt in Dubai
by Katy White
Dubai (a city within the United Arab Emirates in the middle east) has become a subject of interest since their global investment company “Dubai World” has put their country, investors, and other countries in a panic. Dubai World is in a lot of debt that may not be fixed for close to a year. Investors in Dubai World were initially guaranteed their money back, but are quickly learning that is not the case. The government in Dubai has said that they are not responsible for the debt that Dubai World has landed them selves in, and therefore will not pay creditors back. Their economic crisis is causing world stock markets to decline, and is making it difficult for other countries with deficit to sell their own debt. Aba Dahbi (capital of the United Arab Emirates) has said it will help Dubai World with some of its debt, but certainly not all of it. Until the debt is repaid, our global markets will decline, some more than others.
