What next? Let's focus on the real issue

It’s often difficult to focus on the real issue. But the media-bashing that Dubai got over the past few weeks is a little sad and based on negative speculation.

It’s upsetting to see journalists, who have never set foot in Dubai, jump the gun and rip into the emirate’s governments and rulers just to grab front page space.

The real reason to complain, if there was one, is the horrid timing of the announcement, which was made only hours before the country shut down for the Eid Al Adha holidays, without any sort of explanation or statement.

Obviously, this ‘angle’ went unreported, as it wouldn’t have grabbed as much attention as sensational graphics depicting a collapsed Burj Al Arab being washed away to sea.

The world media is so busy bashing Dubai over Dubai World’s request for a freeze on debt payments, that the situation has left a serious void for useful information.

There’s no doubt that world markets were temporarily shaken up – bank stocks tumbled, oil prices were hit, the dollar was lifted and gold hit a record high of nearly US $1200.

The Abu Dhabi stock market also suffered its biggest ever one-day fall after the Eid holiday. But all of this was based on speculation.

When the markets opened last week and the UAE central bank said it would honour Dubai banks’ debts, the crowds seemed to have dispersed pretty quickly.

Dubai World was made aware of the repercussions of its request before it made it, but it did anyway. There’s obviously a bigger plan that most of us are unaware of – which calls for transparency, but again, that’s a separate issue.

The Dubai government has made it clear that Dubai World is an entity on its own and is not part of the government. It’s not guaranteeing Dubai World’s debt, which is another indication of the bigger plan ahead.

The next few weeks will paint a clearer picture of the situation and the Dubai government might give us a better insight into how it plans to pay off its debts.

There are various ways of raising capital and still a few companies left, which if made public, could raise that money - just a positive, speculative thought.