Dubai looks to mop up liquidity

Companies from Egypt to India and from Turkey to South Africa are hoping that the opening of the Dubai International Financial Exchange, set for the end of September, will open the doors to a vast well of unemployed petrodollars.

THE POPULARITY OF Baby Dior boutiques is just one indication of the amount of cash that is once again being generated in the Gulf region. The range for babies by French fashion house Christian Dior sells, among other things, $265 Dior logo teddy bears and $570 cashmere blankets.

Another sign is the amount of money chasing every investment opportunity. IPOs are seen as a particular delicacy and the enthusiasm of the investing public for them makes outbreaks of IPO fever elsewhere look healthily restrained.

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