Please Forgive Dubai

  Ladies and gentlemen, honored professor, good afternoon. Before forgiving Dubai, please forgive my poor English.

  Before my show, I wanna do a simple survey in you that have you ever heard of Dubai or do you know about Dubai? If your answer is Yes, please hands up. Okay, thank you..

  You know, Dubai is a Emirate. But last night, when I was writing this passage, one guy walked by and asked me"what is Dubai? a name of a sweet girl? show her to me "Oh my God, I was shocked.

  Okay, first, let us come to this piece of coverage----

  Nov.25th. Dubai's government, suddenly, declared to rebuild  its largest corporation--"Dubai World"-and to delay its repayment of $59 billion for 6 months. It immediately stunned all investors and revived fears of crisis around the world. In a short time, Dubai has its all reputation ruined.

  How can this simple news be so horrible? Maybe we will get the answer after knowing more about the Dubai World. Let me show you--

  Within the past 4 years, Dubai's government has carried a building project of $300 billion, for which it crazily, successfully, borrowed money from many foreign banks, like a rolling snowball, bigger and bigger. It has been on a debt of $80 billion, with the Dubai World $59 billion. Dubai World is a government-owned super-corporation, owning the most wealth of the nation. However, if it really fail to pay its debt, it would be the largest nation-breaking words-payment after the Argentina in 2001. Actually it has pushed some banks and investors to bankrupt.

   Overall, it spread around the world-

1: the rapid rise of oil price.

2: the stock market crash.

3: the depreciation of the gold and silver's value.

4: the loss of super stars' wealth, like Beck ham.

5: the fears in the debt market. Investors have pushed their guarantee-price from 116 points to 434 points, far higher than in the Iceland's bankrupting period.

6: slow down the GCC and the world's recovery process.

  What do people talking about it? Let us see.

  China: we have checked out that we have no Dubai"s holdings.

  UK and France: we can do it,optimistically.

  Abu Dhabi: we are considering to give him a hand.

  The White House: we won"t let it go.

  Russia: it is so bad for the recovering world.

  Japan: Dubai's dream comes to its end. It is just a palace on the sand.

   However, is Dubai really so guilty and so unforgivable? It is why here I am today, writing this passage on my own and speaking out for Dubai. Let's analyze why. I have discussed about it with my professors and summarized 4 points--

1: the overdoing in building. Influenced by the past crisis last year, hotels' price fell, building projects are cut. They cannot profit in a short time.

2: The impacts of the USA crisis. Lately, Dubai has been setting its feet to the international banking cycle. It pays $5.1   billion yo buy USA holdings, but it depreciated from $84 to $16.8. Also, Dubai bought the Germany bank and Zhada banks, but they depreciated as well.

3: the depreciation of dollars. It has pushed Dubai to a terrible inflating situation.

4: the defaults in the International Financial System. It's those speculators-opportunities-seekers who throw money to Dubai but somehow take them out that blew up Dubai's flourish.

  So, how should we see Dubai' debt crisis? I suggest two points-

1: It's actually a part of the USA economic crisis. Without USA, Dubai, won't show a empty pocket now, right?

2: Although Dubai is so eager to develop that it overdid a lot, it's comprehensible and understandable. Dubai has won much praise as it transformed itself from a sleepy fishing port into a  thriving metropolis.

  In the end, as a student learning Arabic, I am more eager to pray for Dubai to go through this hard time, more eager to beg the international society not to do Dubai wrong, but to offer more help and comprehension. Because, after all, different nations stand on the same planet. Or, if we keep criticism, which country will become the second Dubai? It is a really horrible question. Only God will know. Only time will tell. Any questions? You are welcome.

   Thank you all. Thank you for your time and listening. Thank you again.

                                                                  -----Jason Chao                                                                       Dec 6th,09

Here are a group of pictures about Dubai,Check it out....