I know this week we have been a bit slow with the articles. The reason is that Keynes is overwhelmed with work and I was at a conference in Dubai and I wasn’t able to post from there. And yes, I attended the speech that was given by H.H Sheikh Mohammed bin Rashid, Ruler of Dubai and PM of the UAE 
Sheikh Mohammed bin Rashid was the guest speaker at the MENA equities conference held by Merrill Lynch in Dubai. Other than the great presentation skills, his speech changed the attitude and sentiment of all the asset/fund managers I met, and turned the green light back on to Dubai and Abu Dhabi. I guess most of you read what he said as Bloomberg and Reuters were there and covering the story instantly, but just in case you didn’t, in a nutshell he said that Dubai and Abu Dhabi are one, and they will back each other up if one needed they other. Hence, Abu Dhabi will cover whatever debt obligations Dubai has IF they were not able to pay, which he doubted. This statement lifted up investor confidence as both equity and credit market surged. Dubai Inc. names sukuk such as Dubai 14, JAFZA and Nakheel 09 were up ½, ½ and 1 point respectively which shows that confidence is back to the UAE’s market. Moreover, he said that the second tranche of Dubai’s USD20 billion is well received and will be used to fund future obligations.
Some qoutes from his speech:
- “The ties between Abu Dhabi and Dubai should not be questioned”, Sheikh Mohammed saying the two wealthy emirates were one “family.”
- “We will be there for each other when we need it.”
- “And I want to tell those people who nag about Dubai and Abu Dhabi to shut up.” Indicating his frustration towards news agencies by differentiating between the two emirates.
Amazing conference and an amazing speech!
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Loading ...Tags: abu dhabi, Conference, dubai, Merrill Lynch, Mohammed bin Rashid al-Maktoum, Sukuk, UAE
Using such language can only resonate arrogance!
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It was conveyed as a joke, and the audience responded with laughter. But the message was clear, Dubai will be backed up by Abu Dhabi
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I hope Abu Dhabi truly backs Dubai, especially with the current news. Dubai made us all proud with its multitudes of firsts for the region, it would be a shame for all of us if it was made to fail.
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I think you guys should have a post on Dubai fallout.
I highly question the recent move, were there any front-running? It looks like a conspiracy to me, they were flooding the market with positive news and positive announcement, then all the sudden announcing default! Hazem Al-Braikan style!
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Keynesian Reply:
November 30th, 2009 at 10:01 am
We will inshala. You know how overwhelming running a blog on the side can be. The quick analysis of Dubai World’s decision to seek a standstill is that Dubai and Abu Dhabi have been involved in a high stakes standoff for some time, following the Lehman-induced collapse of global credit markets. Abu Dhabi has been dripping just enough support to keep heavily-indebted Dubai afloat while extracting various concessions from Dubai. With a series of sizeable debt repayments looming, it appears that Abu Dhabi may have ratcheted up its demands for continued support to Dubai. Rather than acceding to Abu Dhabi’s demands, Dubai has called Abu Dhabi’s bluff by announcing the debt standstill. What do u think?
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Okay inshalla Abu Dhabi does back up Dubai but at the same time i think that what 6al 3omrah M7mmd Bin Rashid did was wrong. It doesn’t matter if it was supposed to be some kind of joke, a man of his position shouldn’t be using those kinds of words especially not in a conference. And yes I totally agree with what Ra’ad said.
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Keynesian Reply:
December 3rd, 2009 at 5:02 pm
Welcome to the blog Nayef.
Abu Dhabi shouldn’t pay for “all” Dubai’s mistakes. However, it should help it. I agree with what Abu Dhabi is doing. They are simply saying yes we will pay for valuable assets, but will not pay for non-value-added manmade islands. Further, Abu Dhabi is trying to become a financial hub itself since it has the money now.
I guess Mohammad Bin Rashid said was wrong. She reassured investors of Abu Dhabi’s committment and a week after Abu Dhabi only gives him half the money he wanted/was promised. This sends the wrong signal to the market and shakes confidence in Dubai.
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