Reality Hits Dubai's Waterfront

Debt on real estate projects is hitting governments worldwide, even in oil-rich Dubai, where, for a while, little thought was given to cost and extreme became the norm.

Nakheel, the developer of Dubai's signature palm-shaped islands, was scheduled to make payment on its $3.52 billion of Islamic bonds in a few weeks.

But reality has hit, the project stopped, and restructuring the country's debt may be the only way out. Click to read the NY Times article Dubai Fund Asks for Stay on Debt Payments