DUBAI DEBT TEAM MEMBERS

ANISH

CRISIS
JITHIN
MAHESH
MITHUN
ANJALI
ASWATHY V
MEENU
NEENA
PRIYA M
SEENA
TANIYA

C
 INTRODUCTION

q Dubai debt crisis sounds

new alarm for
tightening risk
management.


q Lehman Brothers led to a

financial crisis on the
global scale.


q The latest Dubai crisis

once again highlighted
the urgency of crisis
CAUSES OF CRISIS

 ‘Oasis of Opportunity’

 Dubai encapsulates free-market
economy.


 Dubai had announced that it

wanted to postpone its debt
obligations by six months.
CONT….

 Not a country rich with oil

resources.


 To attract world entrepreneurs .


 Foreign institutional investors

 State-owned Dubai World is a
holding company having
EFFECTS

 Projects with different countries, may be

delayed( resulting in cost increase), or
dropped, or prolonged.
 Unemployment problem may arise in
Dubai.
 Foreign Institutional investors, who have
business ties with Dubai World, may
face loss.
 Banks in Dubai may face crisis.
 Recovery from last year's economic
recession.
Effects On Indian Banks

 Bank of Baroda : Bank of Baroda has

some real estate exposure to Dubai
-accounting to around five per cent of
its loan book.
 State Bank of India: The bank has an
exposure of Rs 1,443 crore or 0.2
percent of total assets in the UAE,
which the bank claims as insignificant.
 Even as banks are denying that they will
be impacted materially by the present
Dubai debt crisis, RBI has directed
banks to reveal their exposure to
Effects On Indian Companies

 3i Infotech-The company says it has an office in

Dubai, but has no exposure to Dubai World.
 Aban Offshore: The oil exploration company has
deployed six rigs in West Asia.
 DLF : According to the company, it had not exposure to
Dubai real estate.
 Larsen & Toubro : L&T has around Rs 90-115 crore
exposure, in the form of receivables, from its clients
in Dubai, mainly in civil construction
 SPICEJET: Dubai Government-owned Isthimar owns 13
per cent stake inSpicejet.

 And other Indian companies like Voltas, Unitech,
Nagarjuna construction Co.Ltd, Omax, Punj Lloyd, Rolta,
India bulls real estate etc are likely to affect this crisis
 How it affects India
 A large number of Indian workers, especially from Kerala, work in
Dubai.
 Some construction workers are likely to lose their jobs in Dubai. It
may have some repercussions on Kerala’s economy, which is
substantially dependent on Gulf money.
 Since the global financial meltdown, many low-paid workers in the
Middle East havealready lost their jobs.
 The Dubai debt crisis may further worsen their woes.India’s
property markets have deeper links to Dubai and Indian real
estate maybearthe brunt of Dubai’s financial woes, even though
many property developers are denying any such problem. India
has got significant exposure to Dubai through exports and
imports.
 Even gems and jewellery industry may be impactednegatively with
many Indian firms having links to Dubai’s world-famous
bullionmarkets.
 A substantial portion of India’s inward NRI remittances come from
UAE
CONCLUSION

 The situation is very fluid and time is

difficult for Dubai. On one side
sovereignty of Dubai is at stake and
other there are chances of severe
default in payment. What route the
existing ruler choose, time will tell.
In any of the scenario the Dubai
dream run if not over is facing the
glitches.
 N K
H A
T Y
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