Dubai Default: Implications Beyond The UAE

The Dubai World 'default' announced yesterday (see ) will severely derail much of the recovery in the Middle East, and will also knock confidence in global markets, potentially putting an end to the current rally. Much of the cautious optimism towards the MENA region, as opposed to the rest of the world, was that it had the cash (ie Ability to Pay) to prevent any financial catastrophes. This remains the case, but there is an apparent Willingness to Pay issue, which had no been factored in. The news also adds weight to our bearish view of

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