Dubai Needs Management Change
Andrew Critchlow wrote in The Wall Street Journal that Dubai needs changes at the top if it is to overcome its $80 billion debt. Dubai World ran about $60 billion of liabilities acquiring struggling retailer Barneys and the Queen Elizabeth II liner.
Abu Dhabi Commercial Bank has about half of its loan book tied to Dubai
Senior management remains in place, including Sultan bin Sulayem, the chairman who masterminded the expansion.
Holding senior Emirati officials responsible will be challenging. The Sulayem family has close ties to Dubai's ruling Maktoums. Mr. Sulayem's father was a key adviser to the family.
Western lenders want to see experienced executives running Dubai's companies being held accountable by independent boards and creditors.
Easy credit allowed officials like Mr. Sulayem to build Dubai World into a truly international company. In the future, banks will demand greater transparency in return for capital.
