And, these trillion dollar cash reserves are controlled in every case by the respective royal families, typically in sovereign or quasi-sovereign wealth funds.
But most of the investors choosing emerging market debt are buying bond funds with local currency debt, rather than buying the sovereign or quasi-sovereign dollar denominated bonds that foreign countries like Brazil also issue.
News of the financial meltdown of Dubai World, a quasi-sovereign global concern that owns 77% of the international port manager DP World and the single largest real estate developer in Dubai known for its palm-tree shaped luxury residential developments, has raced from the business pages to the headlines of the front pages in a matter of days.