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06
News
Dubai's $10
Shanghai is like Liverpool,
billion bailout
The United Arab Emirates (UAE)
has pledged $10bn to prop up according to British expat
Dubai, one of its most ambitious
members, Dubai’s government has
said.
Shanghai is like Liverpool,
Dubai launched a $20bn long-
according to a British expat who
term bond programme in an effort
currently lives in the city. She quali-
to cover loans that financed its
fied this comment by saying she
aggressive development strategy.
found it modern and fast-paced.
The Central Bank of the UAE
Another more realistically
has bought up the first tranche,
described Shanghai as a “combina-
$10bn, of the bond issue. The five-
tion of Manhattan and Tokyo.”
year bonds pay 4% per year.
Expats enjoy living in Shanghai
“This is a clear step from the
but they disapprove of the locals
central government to back up
spitting and fighting for taxis,
Dubai,” said Khald Masri, a partner
according to research carried out
in Rasmala Investment, a very
by the Jing’an District Women’s
active investment bank in the
Federation.
long time. As many as 12.7 percent But there were other problems
region. “The central government’s
The Federation handed out
said they intended to live in the city with life in Shanghai in addition to
step will help ease the tense situa-
questionnaires to 275 expat families
permanently. spitting and fighting, said the
tion in the local economy and mar-
in Shanghai’s Jing’an district and
When questioned about the rea- Federation.
kets.”
carried out face to face interviews.
sons why they would choose to live Communication with local
Dubai admitted that it needed
The sample of families was drawn
there in the long term, respondents people was extremely difficult
the Central Bank money to stay
from 28 countries.
cited the fact that Shanghai was a because of language problems,
afloat as credit has dried up.
Of the total, 64 percent had lived
safe city with good public security. and there appeared to be very
“This issuance will provide the
in Shanghai for more than three
Some used the words “amazing” few channels for expats to get
Dubai Government with the neces-
years, and 55.3 percent expressed
and “wonderful” to describe their information from the govern-
sary liquidity to substitute the liq-
the wish to live in the city for a
initial impressions of the city. ment.
uidity that has dried up globally in
the last 12 months and accordingly
meet all upcoming financial obliga-
Expats feeling the squeeze overseas
tions,” it said. “This program will
secure the necessary funding for Expatriates are feeling the squeeze are paying for food and over half elements of the UK, the most pop-
Dubai to meet its financial obliga- overseas according to Halifax (52%) have noticed an increase in ular factor being family or people
tions and continue its development International’s new Expat Mood price of 10% or more. (44%), followed by the culture,
programme.” Monitor. Commenting on the research, with one third (30%) of expats
The bond is an unsecured fixed Since January 2008, over half James Gairdner, Managing confessing that they miss the tra-
rate paper, Dubai said. (52%) of expats have noticed a Director of Halifax International, ditional British way of life. Other
Initially, the Dubai stock market decrease in their disposable states, “These figures demonstrate interesting themes included the
rallied at the news, rising by nearly income (with 44% noticing a that it is now more important UK’s standard of recreational
8%. Dubai, one of seven Gulf emi- decrease of 10% or more), and than ever that expatriates are not sport, Marks & Spencer’s and John
rates that together make up the almost two-thirds (62%) have seen only provided with more competi- Lewis, Marmite and the country-
UAE, launched ambitious plans in a decrease in their overall invest- tive, available and secure saving side. However one in four (27%)
the past decade to become a global ment portfolios. options, but also have access to the miss nothing at all.
hub for service industries such as 63% of expats also believe that right financial advice when they With the recent fall in the value
information technology and the economic situation in their are overseas. This will enable of the pound, one in four expats
finance as well as a tourist destina- current country of residence is them to make the most of their also noticed a 10% increase in
tion. better than in the UK. In addition, investments.” their buying power when convert-
It lacks the oil reserves of other property abroad has suffered to a The research also revealed that ing their currency to sterling when
members such as Abu Dhabi, the lesser extent than in the UK, with 41% of expats living around the they were last in the UK.
capital of the UAE and its wealthi- one third of expats (33%) stating world have no plans to ever return 1,153 expats living all over the
est member. Dubai took out huge that the value of their property to the UK. The top reasons for world were surveyed on how the
loans to finance its plans. overseas has remained the same leaving in the first place (in priori- credit crunch has impacted on
Moody’s Investors Service since January 2008. With regards
warned in October that Dubai may to rental markets, over half (54%) circle6
ty order) are: their lifestyles, both financially
need help from Abu Dhabi to pay of expats have reported no change circle6
For a better quality of life (56%) and emotionally, for Halifax
for its debt. The emirate may have in their rent payments overseas. circle6
Work (44%) International's Expat Mood
to refinance $15bn this year in Furthermore, almost nine out of circle6
To escape the weather (27%) Monitor. The survey was carried
To escape the youth culture and out online in January 2009. This
maturing loans and bonds, ten (88%) expats have seen an crime (20%) is the first Expat Mood Monitor,
Moody’s said. increase in the amount that they Nevertheless, expats still miss which will be released quarterly.
March 2009 Investment International www.investmentinternational.com
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