friday, page-59

A few points on the middle east.

-Wealth creation mainly through oil and tourism.

-Significantly Lower oil prices; Higher prices once driven by speculation and hedge funds. Merrill Lynch and the like creating their own oil markets not based on supply and demand but on their investors money.
We now see lower prices due to this money being pulled out and supply now matchng demand BUT when will the speculators money re-enter the oil market and once again drive the prices?


-fewer tourists; escpecially the very wealthy and even people traveling to other regions that use Duabi to catch connecting flights.

-FDI. as Volt pointed out about the worlds tallest building 'The Burj' where is the money going to come from? oil, FDI, borrowing or tourism?

Implications for Australia are

LEI - Dubai contracts make up a significant part of there contracts

WPL & the like - Lower oil prices, Lower revenue, Lower profits (but for how long will oil stay at around the 30-50 mark???)

Is Dubai/Middle East a Basket Case fully reliant on Oil as we in Austraia are so heavily reliant on Commodities (maybe its chalk and cheese?)

- Only 'TIME; will tell


Also - It may have been a blessing in disguise that Kaka didn't go to Man City (EPL) as its owned by the Middle East...Will Man City be Sold in the S-T