Dubai World Must Restructure Itself before it can Restructure its Debt

Well, it turns out that Dubai World needs to restructure its structure before it can restructure its debts. Two of the bankers involved in the talks surrounding the debt-freeze have leaked to Bloomberg that the company's complicated funding structure make a deal unlikely at this juncture.

This is not the first time Dubai World, and various other Dubai and UAE developers have caught criticism for the cloak and dagger way they operate. A translation error was recently blamed for reports that suggested state-owned developer surpluses were being paid into government coughers.

I have to admit it always bamboozled me: why have so many developers operating in the same market, why pit them as competition to one another when surely you could do the same work with one larger company?

However, I was bamboozled as to why they were building so many massive towers and islands when all the developments they had ever launched were still all yet to be completed. In my opinion: greed is the answer; people were making a lot of money and a lot of profit flipping properties in Dubai, and the more properties on the market the more opportunities to flip and flip and flip. Unfortunately no one though about the final flip, which can, all too often turn into a flop.

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