Bloomberg: Dubai May Need Help From Abu Dhabi to Repay Debts

Dubai may depend on support from neighboring Abu Dhabi and the federal government of the United Arab Emirates to help pay for a surge in borrowing, Moody’s Investors Service Inc. said.

Government-controlled companies owe at least $47 billion in total, more than Dubai’s gross domestic product, according to Moody’s data based on economic statistics from 2006.

Hmm. What is worse? The fact that Dubai companies owe an amount more than GDP? Or that this is 2006 data, and one can only imagine how much worse it would’ve gotten in 2007 & 2008 given the huge infra/RE boom.

“In most countries there are identifiable delineations between the public and private sectors,” Tristan Cooper, Moody’s Middle East sovereign analyst, said in the statement. “In Dubai, however, the state corporatist model plus the fact that the ruler and his closest relatives form the core of the government, make it difficult to draw such distinctions.”

As for the tallest tower, here’s my guess: Readings: Skyscraper indicator, LIBOR signals, Deficits & rupee. Since then, oil prices have dropped from $117 to below $80. Middle East stock exchanges have crapped out too. Next in line - Dubai RE.

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