1. Over-exploitation of real estate has become the initiator of the crisis.

There are many reasons for the debt crisis in Dubai. The first is the over-exploitation of the real estate industry. In Dubai, construction sites are all over the city, and they are often "the highest in the world", "unique in the world" or projects worth tens of billions. In order to implement these projects, the Dubai government and its subordinate development companies borrowed heavily in the global bond market to raise investment funds. These projects with numerous investments are difficult to achieve profitability in the short term, and finally Dubai is on the road of debt crisis step by step.

2. Investing heavily in the international financial industry is now suffering serious losses.

In recent years, Dubai has invested heavily in the international financial industry. Under the continuous influence of the financial crisis, Dubai suffered serious investment losses, which laid a hidden danger for the debt crisis. In 2007, Dubai World spent $5 1 billion to acquire a 0/0% stake in MGM, an American entertainment giant. But later, MGM's share price once fell from $84 at that time to $65,438+$06.8. In addition, other investment companies in Dubai spent nearly $3 billion to buy shares of Deutsche Bank and Standard Chartered Bank, but the share prices of these two banks have also shrunk dramatically.

3. The policy of linking the RMB to the US dollar "adds fuel to the fire"

Dubai's policy of pegging its currency dirham to the US dollar also added fuel to the fire. From last year to this year, the depreciation of the dollar led to soaring prices in Dubai and the Gulf region, and the inflation rate reached double digits for several months in a row. The depreciation of the dollar triggered the recession of Dubai's economy, which to some extent became an "accomplice" in the debt crisis.