Dubai financial crisis: causes, bailout and after - a case study

Hasan, Zubair (2010): Dubai financial crisis: causes, bailout and after - a case study. Published in: Journal of Islamic Banking & Finance , Vol. 27, No. 3 (September 2010): .47-55.

Abstract

This paper explains the circumstances that led Dubai to the current financial crisis that still lingers. It analyses the steps taken at various stages by the city state to ameliorate the situation including the bailout help the UAE Government eventually granted. It spotlights the role international rating agencies played in aggravating the situation and demands that their activities be brought under regulatory nets now being strengthened across the world in the context of ongoing global meltdown. Finally, it warns of challenges Dubai may be facing in years ahead and what could be done to pre-empt them. The argument is cast with a backdrop of the economic position of UAE in the Middle-East and happenings at the global level in the arena of finance – mainstream and Islamic.

• Item Type: MPRA Paper
• Language: English
• Keywords: Islamic finance; Global meltdown, Dubai crisis; Rating agencies; financial architecture.
• Subjects: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J38 - Public Policy; G - Financial Economics > G1 - General Financial Markets > G10 - General; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

References

References

Hasan, Zubair (June 2010): Islamic Finance: Structure-objective mismatch and its consequences, ISRA International Journal of Islamic Finance, Vol. 1 No2 (Forthcoming)

Hasan , Zubair (22 Dec. 2009): Dubai Crisis: Islamic Bonds the Problem? Islam online.net

IFIS Weekly: News letter, May 24, 2010.

Mohamed Shihab (2000): Economic Development in the UAE, PP. 249-259 posted on the internet

Rashid Siddiqui (2010): Cross-sell of Islamic finance, Islamic Finance Report 2009, Project Finance International of Reuters.

The New Straits Times, Friday, May 21, 2010, page B8.

WEIF (2010): Ensuring sustainability in the Muslim world: Empowering people leveraging resources. Special Commemorative Publication 2010

In addition, the following internet sources have been used in developing the argument of this paper. These and related site were accessed on December 13-14, 2009 and May-June 2010.

http://www. sukuk.me/newsarticles/72/Sukukme_Dubai_crisis_making_mountain_out_of…

www.tammycump.com/2009/.../economic-crisis-in-dubai.html

http://www.1.voanews.com/ English/news//a-13-2009-03-05-voa28-68772l492.html

http://www.guardian.co.uk/business/2009/dec/13/dubai-world-debt-fears

http://www.nytimes.com/2009/02/12/world/middleeast/12dubai.html

Alibaba.com

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