| This is the VOA Special English Economics Report, from voaspecialenglish.com In recent years, a shining city grew in the desert of Dubai on -- and even off -- the Gulf coast. An island shaped like a palm tree was built for hotels, homes and entertainment. In October of two thousand eight the same developer announced plans for the world's tallest building yet. But the economic downturn soon forced the Nakheel company to suspend those plans. Dubai is in the United Arab Emirates, a thirty-eight year old federation of seven territories ruled by emirs. But, unlike its neighbor Abu Dhabi, oil has not fueled Dubai's growth. Oil is only six percent of its economy. Instead, the property and service industries have led its expansion. Now Dubai finds itself in financial pain. And its reaction has some investors worried. In November, Dubai's largest investment company called for a six-month delay in paying some of its debts. Dubai World Group is seeking to renegotiate terms on twenty-six billion dollars in debt. All of it is linked to Nakheel, which is part of Dubai World. The government owns Dubai World and will take control of its restructuring. But Dubai's finance chief said the government does not guarantee its debt. Dubai World owes creditors a total of sixty billion dollars. The company is not an investment vehicle for the government like a sovereign wealth fund. It is a holding company for businesses in land development, port operations, energy and financial services. The ... |
