Dubai World, a government investment company, which is having debts totaling around $60 billion, has asked creditors to postpone its forthcoming payments until May. This move by Dubai World has caused fears of a potential default and panic among the global financial system, particularly in banks and emerging markets. Weakness is also attributed to the continuing slide in the dollar, which earlier fell to a 14-year low against the yen.
Dubai’s debt reschedule has cast a shadow on the world, pulling down all the markets from Sydney to Sao Paulo.Markets across Asia and Europe crashed on Friday by fears of fresh financial trouble, threatening to derail the global recovery and holding huge ramifications for India.
For India, which has lakhs of its citizens living and working in Dubai, the concerns are pretty much cleat – job losses and sharply reduced trade. Many Indian companies, particularly in the Infra and Realty sectors which could possibly be hit are Nagarjuna Construction, Larsen & Toubro, Voltas ,Bank of Baroda,SpiceJet and Aban Offshore.
Sharp corrections could used as buying opportunity.
Will it trigger next round of selling in markets, one has to wait and watch.
This is completely alarming. If this happened to Dubai, I think that even the countries under it will suffer.
Good Blog , Dubai has good opportunity for buyers.
looking we're now having continously economic problem..what can we do now is save ourself.
Economies around the world are crumbling. We need solutions to fix the economic crises.