Dubai debt crisis hits markets
Stocks and commodities go into tailspin as flagship investment company seeks moratorium.
Published On 27 Nov 2009
Dubai World, an investment company that manages and supervises a portfolio of businesses and projects for the government of Dubai, is asking for a delay on paying back billions of dollars in debt.
The request has sent global stock, commodity and currency markets into a tailspin.
Meanwhile, Dubai is already $80bn in debt and the cost of insuring the emirate – one of seven sheikhdoms forming the United Arab Emirates – against default on its loans has gone up again.
It will now cost $670,000 to insure $10 million in Dubai debt for a period of five years.
Al Jazeera’s Aaron Chew looks at what’s at stake.
Source: Al Jazeera