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Q.

Present Dubai financial tremors ------how will it affect the global economy?

Asked by Good Citizen, 28 Nov '09 12:19 pm
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Answers (5)

 
1.

Dubai is not going bankrupt anytime soon. In fact, the reverse may well be true because it has just begun the process of cleaning up its debt-heavy financial system, say analysts.

It is unlikely to go under because its deep-pocketed brother emirate Abu Dhabi, which has a sovereign wealth fund alone of $800 billion, has already bailed it out last week.
But India will feel some of the tremors. Indians make up 40% of the UAE's population, and Indians in Dubai account for 10-12% of the annual remittances to India.

There are also many alliances between Dubai firms, especially in real estate, and Indian ones. Among them: Emaar Properties has a joint venture with MGF which is planning to invest Rs 50,000 crore over the next five years. Limitless UAE and DLF plan to invest Rs 100,000 crore outside Mumbai and Gurgaon, including a township in Bidadi in Karnataka. Engineering firm Larsen & Toubro has a small exposure to Dubai, while rival Punj Lloyd has contracts in Abu Dhabi.
Dubai World ...more
Answered by dharamender nebhnani, 29 Nov '09 08:40 pm

 
  
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2.

A few Indian construction companies like L&T (Only in electrical field) may be affetced temporarily.However it is not that bad situation as it is conceived.There was a knee jerk reaction initially but European mkts recovered soon when Abudhabi had intervened-60 billion $ is not a great deal for teh 6 th largest oil producer of the world-They said the payments shall be deferred only-Dubai world is a govt of UAE consortium with countris inclding Dubai sharjah Fujihara Abudhabi etc hence nothing to worry-
Answered by SriniVenkat, 28 Nov '09 12:30 pm

 
  
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3.

It wont affect us much
Answered by Nupur, 28 Nov '09 12:22 pm

 
  
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Yeh, it will effect to the global market too......particularly to infra , bank and oil sector......they will try to recover the debt by hiking in oil price.......and hike in oil price will effct to all comodities......
Answered by pradeep mishra, 28 Nov '09 12:25 pm

 
  
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5.

This tremor will certainly effect directly to those companies who have invested in this.Our countries 7000 crores r involved.
Answered by krishna bhojwani, 28 Nov '09 12:24 pm

 
  
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