BiziNation # 38: Dubai....Dubaa Dubaaaa!

Thursday, 10 December 2009 20:51

For the last decade or so, Dubai invoked awe and admiration for the pace at which it could lead a creative growth which was not limited to building sky scrapers, but other garnishing like man made islands, artificial arctic like winter, etc. All these developments were funded by the Government through its investing arm, Dubai World which announced that it could not pay off the $59 billion loan to the banks. The stock markets came crashing down. While that happened, we also talk about the companies from India which are raising money to carry out their expansion activities. The recovery has begun!

Episode Notes

Dubai and the big loan default
Dish TV raises $100 million via GDRs.
Pantaloon raises Rs. 500 Crore
Vedanta to invest Rs. 40,000 Crore
Hindalco to raise Rs. 2,900 Crore
TCS and Infy bag $1bn deal banking on the US recovery
HCL tech bags a $200 mn deal in UK

Listen Online (64 kbps) - 26 mins

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Comments

0 #1 G Vishwanath 2009-12-02 10:54

Hello Ritika/Abhishek,

I could find time today to listen. Here are my comments.

Dubai:
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All along, I have been feeling that something is not okay with Dubai and the construction boom. After I heard about the tallest building in the world, (Al Burj), the island city created in the ocean, and artificial Arctic etc, my fears have been reinforced.

Construction built in defiance of nature is justified only to save lives or to create livelihoods where none existed or for really sound economic reasons. So building a bridge over a river, or a link under-water (the "Chunnel" linking England with France), or the Panama canal or the Suez canal are all justifiable projects.

The recent Dubai projects mock nature and seek to flaunt a community's temporary wealth. I am sure Nature will have the last laugh one day.

Tourist attractions should not be created by mocking the environment and challenging nature. If I had a budget for travel, I would travel to the world's great tourist spots that boast of natural wonders and not spend it on Dubai.
I feel civil engineering technology has been abused in Dubai. I am a civil engineer myself and am not impressed by some of their projects.

Prosperity should be built upon natural resources, skills of the people backed up by hard work of the population.
This region has been lucky to be gifted with oil deposits. Instead of using it sparingly and spending on research on alternatives, what is going on in Dubai is nothing but a frantic gang rape of Mother Earth in which the entire world has joined in. Revenge / Nemesis will come one day.

Abu Dhabi will bolster up Dubai's economy for as long as it can but when oil runs out, it may be end of the road.
The politics of the world will change and I fear Dubai which is now living on borrowed time, will once again return to the sands. If I were a sheikh, I would still keep my camel and bequeath them to my grandchildren. They will need it. A thousand years later, all these modern jazzy construction showpieces may be dug out by archeologists of that time and one more "ancient civilisation" will be discovered and will take its place in History.

Singapore and Hong Kong rulers have been wiser. They have built a permanent economy, without defying nature and without depending on an exhaustible resource.

Revival of the Indian economy:
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Long overdue. Glad to see the signs of recovery.
Thanks to Ritika for teaching me some new abbreviations.
Till now, GDR meant only German Democratic Republic to me!
Confidence Index is another new term. (Why do they call it quotient sometimes? like IQ for measuring intelligence?. Index is better word)

Big Bazaar having its own brands is a good idea. I would much rather buy a good quality product where the profit remains in the country.

I am glad to hear about the unsophisticated Anil Aggarwal and his success with Vedanta. I am amused to hear he began with very little education and as a "Kabaari Waala".

May be, like Dhirubhai Ambani, that is why he succeeded. He has been smart. Not for him CAT or IIM's. He leaves that to the academically brilliant and then hires them to work for him.

Golden Peacock Award? for Excellence in environment protection? The peacock is just a show off. The humble crow has done much more for our environment. It is nature's most dutiful scavenger. It goes unsung while the peacock get's it's name into all these awards. That's life.

Before I sign off, Abhishek, I could hear no snores at the start of the talk. But I sure could hear hysterical laughter (Ritika's and yours) after you had signed off! Listen and check it out. Was it intentional? Will it now be part of your logging off signature tune? If not, you would do well to edit that part out or tell me what the joke was so that I can join in.

Regards
G Vishwanath

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0 #2 Ritika 2009-12-02 21:55

Hi Vishwanath,

Thanks for your comments once again. Your take on every issue we discuss, makes my day.

The bit at the end is actually an add on goof up at the end. Like at the end of the movie, sometimes you have the making of the movie wherein they also show some goof ups during the making of the movie. After we say bbye, we had added a small goof up at the end after the music starts. While recording the podcast, Abhi was responding to my confidence index part by saying what is with all these indices and he and I both didn't know what to say after that. Thats why d laughter.

Sometimes we put a goof up at the end, just to share some of the fun tht we have during d recording.

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0 #3 G Vishwanath 2009-12-04 11:27

Thanks Ritika for the clarification.
You remind me of the software programming experts who secretly embed easter eggs in the pacakges they design and develop.
The difference is that unless someone tips you off you you won't know about these eggs.
Your egg is so visible!
Keep your good work.
Regards
GV

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0 #4 Ashok 2009-12-05 12:47

Abhishek,

My day is also kind of upside down, I guess ... I read the daily newspaper in bed just before I fall asleep. Off to Dubai Monday, lets see kya ho raha hai wahan.

Cheers
Ashok

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