UAE’s Debt Obligations Cause Economic Recovery
The question here is if UAE’s debt obligations could jolt the world financial markets to cause a reverse in the world economic recovery efforts?
There is no doubt the UAE has amassed large amounts of debt over the past several years. This exponential growth in debt, led by Dubai, is becoming an ever-nearing problem for the UAE members as it matures over the several years.
Will these debt obligations be the catalyst for another dip in the financial markets?
This is yet to be determined as the UAE rulers are deciding whether or not the government/sheikdoms will guarantee the debt themselves which will total almost US$100 billion over the next decade.
The Sheiks have hit the media outlets to ease the pain of its debt holders. But it seems the pain will last for some time. Or should they use debt collection? UAE Sheiks could stimulate the world economy if they put some of their cash into circulation!
Where do you think these debt obligations will lead the UAE and the world markets?
I will come back to post my opinion shortly, in the meantime, post your thoughts below…