Publication

This paper focuses on the ongoing debt crisis in Dubai and other recent economic setbacks in the United Arab Emirates (UAE), and assesses their likely impact on South Asia. Owing to the region’s lower exposure to Dubai World’s over-leveraged debt, the author predicts, the impact on South Asia’s financial markets is likely to be limited. He cautions, however, that the real downside risk for the South Asian region is the sustainability of the dubious ‘Dubai model’ which has been emulated in the Gulf neighborhood and one that absorbs a large number of South Asia’s surplus manpower.