Oh, How the Mighty Has Fallen

Debt-laden Dubai said it would restructure Dubai World, a conglomerate spanning real-estate and ports, and announced a six-month moratorium on paying any of the company's debt. The moratorium comes as Dubai struggles to meet payments on maturing portions of a combined $80 billion in outstanding obligations.





Dubai's economy has been hit hard as the global credit crunch saw an end to a six-year boom in the region and sent the emirate's once-flourishing real estate market into decline. The main problem with Dubai is that Abu Dhabi has all the oil reserves within the United Arab Emirates. Since Dubai does not have such major oil reserves, it sought to make its mark by becoming the main commerce center of the Middle East. And, of course, it financed its growth with debt to the tone of $80 billion.