Dubai debt crisis hits markets

Stocks and commodities go into tailspin as flagship investment company seeks moratorium.

    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


    YOU MIGHT ALSO LIKE

    'We scoured for days without sleeping, just clothes on our backs'

    'We scoured for days without sleeping, just clothes on our backs'

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    Unification: Saladin and the Fall of Jerusalem

    Unification: Saladin and the Fall of Jerusalem

    We explore how Salah Ed-Din unified the Muslim states and recaptured the holy city of Jerusalem from the crusaders.