Middle East press unfazed on Dubai debt

Dubai's main source of wealth has historically been as a port

Papers in the Middle East appear not to be shocked by the announcement by Dubai World that it is to reschedule part of its debts.

Commentators feel there was some inevitability about the move, which they view as the result of Dubai's fast-paced economic growth, particularly in the construction industry. Some express fears for the Gulf's financial system but predict that Dubai's economy can be saved by a return to moderation.

It is also seen as a reminder that the global financial crisis is not yet over and there is a perception that it has been highlighted by the UK media as UK banks have both borrowed from and lent to banks in the Gulf.

There is no doubt that the financial shock is great but, at the end of the day, it was expected for reasons that exceed the financial issue ... It [Dubai's crisis] could be linked, mainly, to the crisis of the model, the fact that it reached the saturation stage and the inability of the market to absorb the huge excess in the growth of the construction sector. (2)

Dubai represents a unique example in the Arab world, whether in government administration that has nothing to do with bureaucracy or the kind of life that has become a favourite for Westerners who settled in Dubai ... However, the experiment cannot pass without mistakes, which is normal in emerging economies. (2)

Dubai's financial crisis brings the international credit crunch back to the forefront. It confirms that the news of the revival of this economy is confusing and worrying, that the crisis is not over yet and that the healing stage is still far away. (2)

The crisis may be relatively minimized by the clear interference of the UAE Central Bank ... Let's not ignore the fact that the investment boom witnessed in Dubai in recent years has helped to provide hundreds of thousands of job opportunities for experts and workers in the region, particularly in the construction sector, which was the biggest source of the boom and also the greatest source of the crisis. (2)

What you can sense every day in the foreign and Arab media is the level of gloating over the issue of Dubai's debts, even though these debts are owned by companies in Dubai which are owned by the government, not by the government itself ... I can understand the British media campaign against Dubai as some of Dubai's debts are owed to UK banks. (2)

[Dubai] chose the fast track and took the lift ... Dubai will return to its normal state if it goes back to economic moderation. (1)

There is no doubt that the Dubai crisis will affect the Arab Gulf countries due to the huge investment link between them. This will put investment companies in a difficult position in terms of considering new investments outside their countries. (1)

Dubai's problem ... could lead to a loss of confidence in Gulf banks that are involved in financing Dubai's companies, not to mention international banks, especially in Europe ... The UK, Greece and the Baltic states are in the vanguard of countries that got loans and which are most likely to be affected by the new crisis. (1)

BBC Monitoringselects and translates news from radio, television, press, news agencies and the internet from 150 countries in more than 70 languages. It is based in Caversham, UK, and has several bureaux abroad.

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