Some good financial analysis on the shifting economic power arrangements of the UAE since the devastating crash of last year:
Abu Dhabi has pumped $15 billion into Dubai since last year, providing proof of the strength of the federation but also evidence of a power shift within the union. The Dubai Financial Market may have lost 25% of its value since November and Dubai World has yet to agree to a deal with banks on its remaining $22 billion debt pile, but the principles of the union have passed a stern test. However, the outcome is likely to be that Abu Dhabi takes a more dominant role in the U.A.E. while Dubai takes a back seat. While Dubai has sold assets overseas to help pay its bills, Abu Dhabi has continued to invest by building stakes in household names like Daimler and Barclays.
http://online.wsj.com/article/SB10001424052748703862704575099750771561886.html?mod=WSJ_latestheadlines
Posted by Lester under Environment
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Here is an interesting piece from the Guardian on the recent announcement of Abu Dhabi’s ambitious goals for a greener emirate.
Abu Dhabi announced at a summit of world leaders on renewable energy yesterday that it would become the first petro-driven economy to make a significant commitment to renewables – and it is partly thanks to Prince Charles. Sheikh Mohammed bin Zayed Al Nahyan, crown prince of Abu Dhabi, has decreed that 7% of power will come from green energy sources by 2020.
Thanks Prince Charles.
http://www.guardian.co.uk/environment/blog/2009/jan/20/energy-oil-abudhabi
Posted by Lester under Business
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But now Dubai’s debt-driven splurge on flashy hotels and residential properties is not looking as stable as Abu Dhabi’s more stealthy oil-driven expansion, especially as a bursting of the property bubble and a crunch on credit are hurting financial activity in Dubai.
http://www.forbes.com/economy/2008/11/24/dubai-abu-dhabi-markets-econ-cx_ll_1224markets12.html
