Dubai World announced last week it rejected the repayment of its debt by at least six months. The construction company owned by the state has accumulated a debt of 59 billion dollars, over three quarters of the total debt of the tiny emirate. What makes this news concerns us does, you ask? Well, for the consequences it might have been for AMD. Indeed, many analysts believe that Dubai, one of the seven emirates of the UAE, might ask his neighbor, Abu Dhabi, to help pay off its debt.

This giant (in comparison) draws most of its oil revenues, but has recently sought to diversify by investing in a particular sector, high technology. Thus ATIC, another Crown corporation now owns nearly 19% of AMD and a large part of GlobalFoundries. In total, ATIC has invested nearly $ 12 billion in AMD & GloFo. We can understand the fears of some, thinking that Abu Dhabi could reduce the rate it should pay the debt of Dubai World.

However, analysts at FTN Equity Capital Markets Corp. do not believe that Abu Dhabi will reduce its investment, as they appear to be vital in a crisis. If oil has provided much of the 700 to 800 billion dollar war chests of the emirate, it is not eternal, and secure other sources of income and therefore necessary. Note that Dubai World was in charge of a similar case; make Dubai a tourist destination of dream for supporting the emirate whose economy is now based more on real oil.

Ultimately, this new reassuring action allows AMD to continue to grow. In one month, it rose from just over $ 4.25 to $ 8, especially because of the joint announcement with Intel.’