Dubai Saved From Financial Armageddon By Lucky Oil Discovery As Sheik Twitters With Joy

Just when Dubai’s finances were looking disastrous, the emirate’s ruler Sheikh Mohammed bin Rashid al-Maktoum announces a potentially huge new oil discovery right in his backyard. Saved.But don’t take our word for it, take his:
[image url="http://static.businessinsider.com/image/4b6c0a1e00000000001fc02f/image.jpg" link="lightbox" caption="" source="" alt="Dubai twitter" align="left" size="xlarge" nocrop="true" clear="true"]
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Dalton Garis, associate professor of economics and petroleum markets behaviour at Abu Dhabi-based Petroleum Institute, told Maktoob News: “This is very good news, the reason being it will provide Dubai to a large extent, to a small extent, to some extent, a new source of revenue”.

Garis said if the oilfield, discovered east of the emirate’s Rashid field, is feasible for production it means Dubai can borrow money on low interest over a 20-year period and pay some of its crippling short-term, high-interest debt taken to fuel its real estate and tourism sectors, which fell prey to the global economic recession.

The oilfield “would enable Dubai to earn cash every month,” Garis said. “Dubai would have a cash source not dependent on the vagaries of the tourist market.”

Garis, however, warned that the oilfield would still depend on “the vagaries of the world’s economic recovery and global demand”.

For some history, see why Dubai was the most obvious bubble ever >

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