Abandubai.com

Amusingly, no sooner than a series of commentators rushed to point out how stable and friendly Dubai is (including some local names that might surprise you) Dubai reminded everyone that there is no freedom of the press in the city-state by yanking Western papers critical of the jurisdiction off the stands.

The Sunday London Times newspaper was removed by authorities from shelves in the United Arab Emirates on Sunday amid intensive reporting of Dubai's debt problems, an executive at the paper said.

The National Media Council ordered the paper blocked by distributors without providing a reason, an executive at the paper in Dubai told Zawya Dow Jones.

The Sunday Times edition available in the U.A.E. on Nov. 29 featured a double-page spread graphic illustrating Dubai's ruler Sheik Mohammed bin Rashid Al Maktoum sinking in a sea of debt. The Times wasn't given a reason for the block, or a timeframe when it will be lifted, the executive said.1

Good thinking.  No word yet if the powers that be have blocked internet traffic.  We wouldn't want the locals reading in Reuters, for example, that the Crown Prince had likely lied through his teeth to Westerners in Davos not two weeks ago.

"Where next for the ruling family in Dubai?" said British historian Christopher Davidson. "The massive loss of legitimacy that the ruler is now facing, the massive loss of legitimacy that his son and crown prince face after lying to the World Economic Forum last week -- where do these guys go from here?"

Sheikh Mohammed, whose face and words grace posters all over town, told the forum this month that the worst had passed for Dubai which was well-placed to pursue its development plans.

The news that investment vehicle Dubai World could not pay a $3.5 billion bond was released just before the Muslim Eid al-Adha holiday and UAE national day on December 2. Local media have almost entirely avoided comment on the debacle.2

Then the news that Dubai World, forced to deal with upcoming payments, apparently refused an asset sale.  (Talk about confident in the indulgence of your creditors, and the support of local Daddy Petrobucks, Abu Dhabi).

"The group absolutely refused in the last few months to sell a number of good investment and property assets at low prices," al-Ittihad newspaper said, quoting a source at Dubai World, the holding company at the center of Dubai's debt crisis.3

Critical question of the day: Who will be the first to register abandubai.com?

1. 1. Andrew Critchlow, "U.A.E. Removes Sunday London Times From Newsstands," The Wall Street Journal, November 29, 2009.
2. 2. Andrew Hammond, "'Dubai Model' Was The Vision Of One Man," Reuters, November 27, 2009.
3. 3. Rania Oteify, "Dubai World Refused Distress-Asset Sale: Report," Reuters, November 29, 2009.