Dubai debt shock sends waves of gloom over real estate market

[Nicholas Wallwork]

Recent hope that the property market in Dubai might be bottoming out as the number of transactions*increased have been dashed by the news that the Emirate has debts of $80 billion that it cannot*currently re-pay.

Most of the debt is owed by government owned Dubai World, parent company of master developer*Nakheel that is building some of the most well known projects such as The World and Palm Jumeirah.*The company has announced a six month standstill which means it cannot pay any of its $60 billion*debts before May 2010.

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