What does this $700bn US bailout mean for the UAE? « Peter J. Cooper’s Weblog

In the UAE the banking sector is very well capitalized and if its lending is now reduced then it comes as the economy was in danger of overheating. Recent inflation figures and shortages of skilled labor point to an economy in need of tighter credit. This could actually be beneficial to the health of the economy in the long-run, although a short term shake-out of less well conceived projects looks inevitable as credit risk is examined more closely.