Saturday, November 29, 2008

Sentences to ponder

Roula Khalaf at FT:
So even those who usually thrive in times of crisis – and Dubai is used to benefiting from the Middle East’s political turbulence – are now having to face the ripple effects of the global mayhem.
The setting up of the advisory council, as it was described on Monday, was made public during a week in which it became clear the real estate sector’s rollercoaster ride was ending and the oil price nosedive was continuing. It also came amid a swirl of rumours about plans to sell companies to the richer emirate of Abu Dhabi and whispers outsiders were preparing multibillion-dollar funds to buy up Dubai assets (both Dubai and Abu Dhabi furiously deny the rumours).
Dubai is still too sensitive about admitting it might need a bigger bailout from the federal government of the United Arab Emirates, because this would essentially mean oil-rich Abu Dhabi, which funds the largest part of the federal budget, was rescuing its sister emirate.

But following the merger of mortgage lenders Tamweel and Amlak into two federally owned banks, similar consolidations under a federal umbrella could make perfect sense.
Consolidations like merging several of the "national" airlines?

I wonder how Boeing stock is doing.


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