AND Share

1. Apart from leveraging to finance their growth, Dubai looked at other investment opportunities. i.e. investing in Vietnam.

I wonder if Dubai will require higher return on equity from their investments now?

2. Intuitively, it can be argued that after the event of the Dubai World standstill proposal, investors will be more cautious toward emerging markets.

However, no two countries are the same. Emerging markets like China, India and Vietnam have much larger populations (effectively markets for many industries) and are more diversified.

Dubai effect will ripple through, but not so devastating.

3. Nevertheless, a lesson can be drawn from excessively-leveraged development and the risk of change in credit ratings.