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Tuesday, December 01, 2009

What happened in Dubai?


Last week there were sensational stories about financial collapse in Dubai.

What actually happened?

Dubai has set it elf up as a financial centre and simply there was overexpansion, over investment, unoccupied office towers and empty shopping malls. There was nothing to sustain development. Unlike its neighbour Abu Dhabi, it has no oil wealth or natural resources.

A source there noted that one of the reasons for the flow of money into Dubai was that banks did not ask too many questions about the origin of the money....

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