Dubai's Lesson for Corporate Treasury
While you were feasting on turkey last week, Dubai was eating $59 billion in bad loans.
A playground of the rich located in the Middle East, Dubai touted its man-made islands for sale to the world’s wealthiest home buyers. And Dubai World, the development arm of Dubai, thought it had the full financial backing of oil-rich United Arab Emirates. Wrong: The U.A.E. made it perfectly clear over the holiday weekend that Dubai had to clean up its own mess. Now Dubai is asking for a six-month reprieve on its debts.
The lesson for corporate treasury and finance professionals: There is no such thing as no risk.
Tags: Dubai, financial risk management, United Arab Emirates
