Dubai World's surprise request for a freeze on debt payments provided the focus for world financial markets yesterday, hitting bank stocks and the price of oil, but lifting the dollar on a day when US and most Gulf markets were closed.
With the US on holiday for Thanksgiving, the region observing Eid al Adha, and trading on the London Stock Exchange temporarily closed for technical reasons, the environment was ripe for rumour and sensation as markets eschewed risk for gold and US dollars.
The day began with credit ratings agencies downgrading several government-related companies, such as DIFC Investments and Emaar, citing questions over Government support. Gold, a traditional refuge for investors in a storm, hit a record high of nearly US$1,200 before falling back.
Dubai then issued a statement to the market clarifying that DP World, the profitable ports division of Dubai World, would be spared from a restructuring that was announced along with the debt freeze request.
The announcement regarding DP World was welcomed by markets and within the company itself. "This makes perfect sense. We have very tradable assets and a very attractive business," a DP World executive said, speaking on condition of anonymity.
Still, markets added a premium to the cost of borrowing for Gulf companies, and the price of insuring government debt against default also rose.
European stock markets had their biggest falls in three weeks, while the MSCI index of emerging stock markets declined by one per cent.
Worst hit were banks with exposure to Dubai such as Credit Suisse Group, HSBC Holdings, Barclays, Lloyds Banking Group and Royal Bank of Scotland. Credit Suisse fell 3.5 per cent in Zurich, HSBC slid 4.3 per cent, Lloyds sank 3.9 per cent and RBS retreated 4.2 per cent in London. Carmakers and aircraft manufacturers were also hit. European bonds rose as investors fled to the relative safety of government debt.
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The specs: 2019 Mini Cooper
Price, base: Dh141,740 (three-door) / Dh165,900 (five-door)
Engine: 1.5-litre four-cylinder (Cooper) / 2.0-litre four-cylinder (Cooper S)
Power: 136hp @ 4,500rpm (Cooper) / 192hp @ 5,000rpm (Cooper S)
Torque: 220Nm @ 1,480rpm (Cooper) / 280Nm @ 1,350rpm (Cooper S)
Transmission: Seven-speed automatic
Fuel consumption, combined: 4.8L to 5.4L / 100km
The bio
Job: Coder, website designer and chief executive, Trinet solutions
School: Year 8 pupil at Elite English School in Abu Hail, Deira
Role Models: Mark Zuckerberg and Elon Musk
Dream City: San Francisco
Hometown: Dubai
City of birth: Thiruvilla, Kerala
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.