Dubai is delaying payment on its debts and that has sent stock markets around the world lower. This could be a trigger that reverses the remarkable bear market rally that has taken place since March.
Dubai was also the location of the crisis signal in the Skyscraper Index in August 2007. Things have become increasing less optimistic in what was considered a “magic kingdom” for the success of remarkable construction projects.
September 14, 2009 4:42 PM by Mark Thornton (Archive)
Dubai in the United Arab Emirates is where the last signal was given by the Skyscraper Index. In August of 2007 it gave a “sell signal” for a global economic crisis when the Dubai Tower surpassed the previous record height for a skyscraper. It seems not only the signal but the impact of the crisis is now being felt there. Bloomberg reports that the Dubai Fund which is the city-state’s sovereign wealth fund is in serious financial trouble.
This story relates to Dubai Sovereign Wealth Fund.
My original article on Skyscrapers and Business Cycles is here.