The whispers have started. Rumors are being seriously discussed. Brief nervous glances all over the office. Deep, shared silences at lunch. This past weekend, the courts closed the Kuwait Stock Exchange for two days to slow losses. We heard that a competitor cut half their staff in Dubai. Banks out in Dubai will no longer lend to employees of real estate developers – which is the only way an employee can pay a year’s rent in advance. They are afraid of layoffs (self-fulfilling prophecy).

The jitters have reached the big dreams of the UAE. Think about it – What do you think the oil barons were doing with a lot of their free cash? Playing Wall Street. Think these buildings are going up as a cash transaction? Nope – lots of loans. Heavy leveraging based on oil prices. And where are those….?

Time for everybody to wake up…

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