The Geopolitics Of The Dubai Debt Crisis: It's Iran vs. The United States

[FarCenter]

John Carney|Nov. 28, 2009, 6:36 PM | 1,860 |11
http://www.businessinsider.com/the-geopolitics-of-the-dubai-debt-crisis-its-iran-vs-the-united-states-2009-11

The role of Iran may be the most overlooked in the Dubai debt crisis.

Of all the states of the United Arab Emirates federation, Dubai has maintained the closest ties to Iran. Indeed, as international pressure has built on Iran over the past decade, Dubai has prospered from those ties. It provides critical banking and trade links for Iran, often serving as the go-between for European or Asian companies and financial firms that want to do business with Iran without violating international sanctions.

Abu Dhabi, the wealthiest member of the UAE and a close ally of the US, may be pressuring Dubai to limit its links to Iran. Indeed, this pressure may be behind statements coming from Abu Dhabi about offering “selective” support for Dubai. Companies or creditors thought to be too linked to Iran could find themselves shut out of any bailout.

The United States government, which has remained somewhat taciturn throughout this crisis, is no doubt encouraging Abu Dhabi to apply this pressure. In part because of Dubai’s connections to Iran, US financial institutions are not among the biggest creditors to Dubai World.

It’s not all Iran, of course. The problems in Dubai, the member of the United Arab Emirates that has found itself in a dire financial crisis, closely mirror those behind the global financial crisis.
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[WCGreen]

1. This is good...

Iran is going to be completely isolated pretty soon and Obama will be able to defuse the situation without a shot being fired...

Or armageddon could happen...

[FarCenter]

2. There is a sizeable Shiite minority in the UAE

Note that Saudi Arabia is already engaged in war against Shiites in Northern Yemen.