Tuesday, December 15, 2009

Uncle Dhabi's terms

After Uncle Dhabi stumped up the goods to get Dubai World back in orbit, the price of it's beneficence is beginning to surface, at least to the level of speculation.

Abu Dhabi May Demand More Power for $10 Billion Dubai Lifeline
Abu Dhabi’s support may come with a price that undermines Sheikh Mohammed’s go-it-alone vision for Dubai.

“This isn’t no-strings-attached money,” said Jim Krane, author of “City of Gold: Dubai and the Dream of Capitalism.” “This is the big chance for the Al Nahyan family to dragoon its maverick cousins back into the union. Most of all, Abu Dhabi wanted to avoid the embarrassment of Dubai looking outside for its bailout.”

Abu Dhabi may increase its influence over Dubai’s flagship companies, such as Emirates Airline and port operator DP World, Ltd., said Emad Mostaque, a London-based Middle East equity-fund manager for Pictet Asset Management Ltd., which oversees more than $100 billion globally. They “are likely to become U.A.E. strategic assets rather than Dubai strategic assets,” he said.

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