Monday, January 11, 2010

Wishful Thinking

As I write this the top article on Bloomberg on the Web is about a foreclosure case in Dubai. The article says that this establishes a precedent that may open the floodgates to more foreclosures within the Emirate.

There are a few problems with that conclusion:
1.) Barclays refuses to release any information about the case other than it won. If this was a forclosure against a foreign national who had left the Emirates and not turned up to defend his rights to prevent enforcement, which are extensive in the UAE, then the verdict has little meaning.

and more to the point:

2.) The concept of precedent does not exist in Emirati courts so no single judgement is capable of "opening the floodgates." Indeed records of previous judgements are not even kept in Dubai which is probably why Barclays published the verdict itself.

Just more wishful thinking by Dubai creditors.

1 comment:

Anonymous said...

What will Barclays say

Of course the defendant was expat and out of station. Further the property is underwater and there are no takers for that property... hey... the legal fees itself are hefty enough...

This is just a good excuse of have some free PR