Category: Dubai

A suk-er born every minute?

11 May, 2010 (11:02) | Bankruptcy, Capital markets, Dubai, Global news, Islamic finance, Speculation |

By: David A. Smith   Sharia-compliant finance is not broken, but it is dented, says the Economist, in this interesting little expose of the cracks in jurisprudence that arise when a new capital form is put to the test.   Nothing to worry about … is it?   There was a time when proponents of […]

Always with the fine print

23 February, 2010 (12:31) | Bankruptcy, Capital markets, Dubai, Global news, Speculation |

By: David A. Smith   Am I allowed to gloat?   Not gloating, just celebrating   Back in early December, I posted about Dubai World’s default announcement, calling it ‘a shock of the first magnitude, with consequences that will reverberate for years if not decades.’  In the days that followed the financial press was fully […]

Dubai World: flinching or maturing?

15 December, 2009 (10:10) | Bankruptcy, Dubai, Global news, Islamic finance, Recapitalization, Speculation |

By: David A. Smith   Perhaps motivated by AHI’s thorough five-part post demonstrating its serious repercussions, the government of Abu Dhabi announced on Monday that it would be injecting $10 billion into Dubai to fund Dubai World’s upcoming sukuk (Islamic bond) payment and to provide working capital for Dubai World through next April.  In doing […]

Sovereign bankruptcy: Part 5, whither Islamic finance?

11 December, 2009 (10:50) | Dubai, Global news, Islamic finance, Speculation |

 By: David A. Smith   [Continued from yesterday’s Part 4 and the preceding Part 1, Part 2, and Part 3.]   This multi-part post covers the upcoming sovereign bankruptcy of Dubai World, a shock of the first magnitude whose consequences that will reverberate for years if not decades.   Part 1 deals with the Dubai double […]

Sovereign bankruptcy: Part 4, the invention of bankruptcy

10 December, 2009 (10:38) | Dubai, Global news, Islamic finance, Speculation |

By: David A. Smith   [Continued from yesterday’s Part 3 and the preceding Part 1 and Part 2.]   As I’ve covered so far, the Dubai World default announcement is a megashock to the global capital markets, particularly Islamic ones, for it thrusts Dubai and all of Islamic finance into a realm of uncertainty.  A nation that lacks […]