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February 23, 2009

Abu Dhabi replacing Dubai?

The NYT DealBook has an interesting post on how Abu Dhabi is making bold moves formerly associated with fellow Emirate Dubai.
Twin deals initiated out of Abu Dhabi on Monday could signal a major change in power in the United Arab Emirates — the seven-state federation in which both Abu Dhabi and Dubai belong.

First, Abu Dhabi has subscribed to half of a $20 billion bond offering floated by the government of Dubai to help the emirate pay off the more than $80 billion in debt it racked up during the boom years.

...By assisting Dubai in paying off part of its huge debt, Abu Dhabi is sending a signal that it has the money and the power to lead the U.A.E. through the current economic downturn.

Related: Couple of YouTube videos on the Dubai Real Estate crash, here and here.

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of information and networking services to the private equity and venture capital ecosystem in India. View free samples of Venture Intelligence newsletters and reports. Email the author at arun@ventureintelligence.in