A nation of property owners

An Abu Dhabian official has briefed Reuters that Abu Dhabi will rescue Dubai on a “case-by-case basis”. The official stated:

“We will look at Dubai’s commitments and approach them on a case-by-case basis. It does not mean that Abu Dhabi will underwrite all of their debts.

“Some of Dubai’s entities are commercial, semi-government ones. Abu Dhabi will pick and choose when and where to assist.”

This is potentially bad news for the UK taxpayer, who faces the prospect of provided further cover for British banks, who invested $50bn in the region at the height of the boom. The reason we’re in the firing line? Generous though they are, Abu Dhabi is unlikely to support exposed British investments when they know that the British government will cover the losses; Brown’s rescue package set a very inviting precedent for other nations. Recent history will compound the axiom that the British love property ownership: shacks in the States and worthless monstrosities in the Middle East, you name it we’ve got it.