Do you think Dubai’s debt crisis has been blown out of proportion by the world’s press?
The results are in.
December 13, 2009 1:44 by Dana El Baltaji
Whether you agree with the negative press Dubai has received recently or not, you cannot deny that recent events have not helped shield the emirate from widespread criticism. Only weeks after Sheikh Mohammed bin Rashid al-Maktoum assured investors that the Dubai government and its subsidiaries will meet its financial obligations, the government announces that Dubai World and Nakheel asked investors for debt standstill of six months for a whopping $26 billion.
And top it off, officials made the announced right before the Eid al-Adha and National Day vacation, which meant that investors around the world had no means of getting more information on the issue.
To date, no one’s really clarified the issue, and investors are still guessing if the emirate will meet its financial obligations.
Dubai World’s financial problems instigated a barrage of negative press for the emirate, with analysts insinuating Dubai was experiencing a financial apocalypse that will destroy the once booming commercial hub.
Kipp won’t argue whether Dubai deserved the bad press, because we don’t have enough information from government officials and industry leaders to take a stand (and because we don’t want to be banned).
Instead, we’ve left it up to you to decide. According to Kipp’s poll, 21 percent of readers think the international press has blown Dubai’s debt crisis out of proportion, and is always looking for ways to degrade Dubai. However, the majority – 48 percent – think Dubai is partially responsible for the negative press, claiming the emirate is “not as transparency as some would like it to be.”
Meanwhile, 30 percent of respondents think Dubai is entirely responsible for the negative coverage, claiming the emirate “deserves” it. And finally, 1 percent of Kipp’s readers don’t care either way, claiming they have not been affected by the crisis.