Actor Burt Reynolds released from hospital after flu bout






(Reuters) – American actor Burt Reynolds has left a Florida hospital after a battle with the flu, a representative for the “Smokey and the Bandit” star said on Tuesday.


“Burt has been released from the hospital,” said Reynolds’ manager, Erik Kritzer.






Reynolds, 76, was admitted to an unidentified hospital last week with dehydration and was later placed in intensive care.


Reynolds is best known for his roles in 1970s films such as “Deliverance” and “The Longest Yard.”


He won a Golden Globe award and scored an Oscar nomination for his role as a porn king in the 1997 film “Boogie Nights.”


Reynolds underwent heart bypass surgery in 2010.


(Reporting by Eric Kelsey, editing by Jill Serjeant and Doina Chiacu)


Diseases/Conditions News Headlines – Yahoo! News





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Microsoft’s Ballmer Does Not Fear Dropbox or an Office-less IPad






When Microsoft Chief Executive Officer Steve Ballmer does his bounding these days, it’s often in front of an 82-inch interactive display mounted on the wall of his office. Ballmer gets to poke at the screen—a Perceptive Pixel LCD—like a more energetic version of Wolf Blitzer. The display points to Microsoft’s vision for an interactive future in which documents, spreadsheets, and presentations get animated and people work on projects with more gesticular gusto. (This is a future that plays to Ballmer’s strengths.)


Microsoft (MSFT) took a decently big step toward this future today with the release of Office 2013. As Dina Bass and I pointed out, this is Office for the Cloud, in that you can now save files straight to SkyDrive, Microsoft’s online storage system. Users can also pay for the software on an annual subscription basis and receive updates every three months instead of every three years. In an interview on Jan. 29, Ballmer talked about the release of Office 2013 and where Microsoft is heading when it comes to making people more productive.






What’s the big pitch here?
No. 1, this new Office is really consistent with what I would call a whole new generation of hardware and software. It has a fast, fluid user interface. It works well with touch and supports modern UIs and modern hardware. It is the first version built from the get-go to think about the cloud as its delivery point. It supports multiple devices, and it embraces the notion of social, so you can stay connected and share information with the people you care about. It will be extremely valuable to anybody who cares at all about being productive.


You guys face the huge challenge of trying to advance a product on which about 1 billion people rely. You want to modernize it, but you don’t want to break anything that people need. Partly as a result of this, Microsoft is coming to the cloud late and now going up against a company like Dropbox that already has 100 million users.
Well, you’ve got to remember, 100 million sounds like a pretty small number to me, actually. We’ve got a lot more Office users. And actually if you even want to go to the cloud, we have a lot of Hotmail and SkyDrive users. I’m not beating on Dropbox. They’re a fine little startup and that’s great.


We first did our HTML versions of Office, the so-called Web Apps, two releases ago. I think probably six years. We enhanced them three years ago. And this is just another logical step down the path that we had embraced.


You have 1 billion Office users today. It seems like that number can’t get that much bigger.
That number is going to grow. That’s sort of the miracle of economic development, isn’t it? More and more people enter the class of information workers and knowledge workers. More and more students getting more and more education, taking on more and more jobs where they work with information every day.


You knocked Dropbox as a small startup, but you guys paid $ 1.2 billion last year for Yammer, and it has just 6 million-plus users to Dropbox’s 100 million.
Well, remember, there are two different things here. Yammer is about sort of mid-size companies and above. And what we’re trying to do with [Microsoft's cloud-based service] Office 365, it has an enterprise side and a consumer side. If you want to get numbers like 100 million, it helps to start with consumers as opposed to businesses so you’re doing an apples-to-apples comparison.


In general, I would say a much higher percentage of our unit engagement with our customers comes from the consumer. And a much higher percentage of our revenue participation comes from our business customers. And the Yammer model is really about how do you let people who work in businesses get excited, and then if they do and their businesses think it’s important and valuable, how do they pay for that?


But, on the whole, you’re still satisfied with this deal? Only 20 percent of Yammer’s customers actually pay for the service.
I’m delighted. We have a lot of work to do. When we bought it, we knew we had a lot of work to do. It’s a great team of people, but really getting it bootstrapped, it’s a product that it’s easy to build a natural and viral following, which is fantastic. We’re kind of on track, but on track on what I would call a big, bold voyage.


What do you think about this concept of every document having its own URL? We’re obviously heading in that direction, so give me your vision of the next couple of years and what documents look like.
Yes, I think a lot about—you could say a lot of what’s happened heretofore gets a chance to get remade. When we first built Word, Word was primarily about authoring documents that were going to get printed. Yet the number of documents that get printed as a percentage is much lower than it used to be. And most presentations were essentially about things that you were going to do face to face, and yet many more presentations get done digitally, and get done virtually than ever got done before.


And we’ve done a lot of innovation in core Office that sort of speaks to that trend, and yet I think there’s a lot more coming as you think about, kind of, is every website an Office document? It’s possible. Is every Office document a website? It’s possible. It’s a way to think about it.


How’s that Office for the iPad coming along?
I have nothing to say on that topic. We’re very glad with the product, very happy with the product that we’re putting in market. It makes sense on the devices like the Mac and the PC. We have a product that we think makes a lot of sense. We do have a way for people always to get to Office through the browser, which is very important. And we’ll see what we see in the future.


(This interview was edited for content and clarity.)


Businessweek.com — Top News





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Neglect, errors to blame in Brazil nightclub fire






SANTA MARIA, Brazil (AP) — There was no fire alarm. There were no sprinklers or fire escapes. And when a band member tried to put out a fire that had been started by pyrotechnics, the extinguisher didn’t work.


All the elements were in place for the tragedy at the Kiss nightclub early Sunday. The result was the world’s worst fire of its kind in more than a decade, with 231 people dead and this southern Brazilian city in shock and mourning.






Funerals began on Monday, as reports continued to emerge about the accumulation of neglect and errors at the packed night spot.


Brazilian police said they detained three people in connection with the blaze, while the newspaper O Globo said on its website that a fourth person had surrendered to police. Police Inspector Ranolfo Vieira Junior said the detentions were part of the ongoing police probe and those detained can be held for up to five days.


Vieira declined to identify those detained, but the Brazilian newspaper Zero Hora quotes lawyer Jader Marques saying his client Elissandro Spohr, a co-owner of the club, had been held.


The paper said police also detained two members of the band that was performing when the blaze broke out in this university town of about 260,000 people. The band’s guitarist told Brazilian media he saw flames lick the ceiling after the group’s spark machine was deployed.


More than 100 people remained hospitalized for smoke, local officials said. Paulo Afonso Beltrame, a doctor helping coordinate the emergency response, said he was optimistic that those injured would pull through.


“It’s impossible to predict what will happen, because they are all in a very delicate state, but there’s hope for all of them,” said Beltrame, adding that more than 40 survivors had been sent to neighboring cities for treatment of burns and smoke inhalation. “One of the problems we’re having here is that all these people need to be on respirators and we don’t have enough respirators in the city.”


Funeral services were held for several of the 231 victims, most of them college students 18 to 21 years old. Some of the victims were minors. Most died from smoke inhalation rather than burns.


Initial reports suggested the tragedy was the result of a series of failures. Police have said they think the pyrotechnics ignited flammable sound insulation on the ceiling.


Other witnesses said security guards who didn’t know about the blaze initially blocked people from leaving without paying their bills. Brazilian bars routinely make patrons pay their entire tab at the end of the night before they’re allowed to leave. Many of the dead were found in the club’s two bathrooms, where the blinding smoke caused them to believe the doors were exits.


Rodrigo Martins, a guitarist for the group Gurizada Fandangueira, told Globo TV network in an interview Monday that the flames broke out minutes after the deployment of a pyrotechnic machine that fans out colored sparks, at around 2:30 a.m. local time.


“I felt that something was falling from the roof and I looked up and I saw the fire was spreading, and I shouted ‘Look, it’s catching on fire, man, it’s catching fire,’” Martins said. “Then the drummer tried to throw water on it, and it looked like the fire spread more then. Then the security guards came with an extinguisher, tried to use it, but it didn’t work.”


He added that the club was packed and estimated the crowd at about 1,200-1,300 people.


“I thought I was going to die there. There was nothing I could do, with the fire spreading and people screaming in front.”


Martins confirmed that the group’s accordion player Danilo Jacques, 28, died, while the five other band members made it out safely. Martins said he thought Jacques made it out of the building and later returned to save his accordion.


Martins said the group nearly always used the so-called Sputnik pyrotechnics machine and that it had never before caused any problem, even in smaller venues. An electrical short circuit could also possibly have been to blame for the fire, he suggested.


Still, police were leaning toward the pyrotechnics as the likely cause of the tragedy. Police inspector Antonio Firmino, who’s part of the team investigating Sunday’s blaze, said it appeared the club’s ceiling was covered with an insulating foam made from a combustible material that ignited with the pyrotechnics. He said the number and state of the exits is under investigation but that it appeared that a second door was “inadequate,” as it was small and protected by bars that wouldn’t open.


Television images from Santa Maria showed black smoke billowing out of the Kiss nightclub as shirtless young men who attended the university party joined firefighters using axes and sledgehammers to pound at the hot-pink exterior walls, trying to reach those trapped inside. Teenagers sprinted from the scene after the fire began, desperately seeking help. Others carried injured and burned friends away in their arms. About half of those killed were men, and another half women.


The party was organized by students from several academic departments at the Federal University of Santa Maria. Such organized university parties are common throughout Brazil.


Beltrame said he was told the club had been filled far beyond its capacity, and the crowds and thickness of the smoke made it hard for people to find their way out.


“Large amounts of toxic smoke quickly filled the room, and I would say that at least 90 percent of the victims died of asphyxiation,” Beltrame said. “The toxic smoke made people lose their sense of direction so they were unable to find their way to the exit. At least 50 bodies were found inside a bathroom.”


Beltrame said people who were inside the club and thought they made it out safely have started to turn up at area hospitals with symptoms of smoke inhalation, which he said can take hours or even days to appear. He estimated that around 15 people have sought out help in the past few hours and said some have had to be intubated.


Santa Maria Mayor Cezar Schirmer declared a 30-day mourning period, and Tarso Genro, the governor of the southern state of Rio Grande do Sul, said officials were investigating the cause of the disaster.


The blaze was the deadliest in Brazil since at least 1961, when a fire that swept through a circus killed 503 people in Niteroi, Rio de Janeiro.


Sunday’s fire also appeared to be the worst at a nightclub since December 2000, when a welding accident reportedly set off a fire at a club in Luoyang, China, killing 309 people.


___


Associated Press writers Marco Sibaja contributed to this report from Brasilia, Brazil, Stan Lehman and Bradley Brooks contributed from Sao Paulo and Jenny Barchfield contributed from Rio de Janeiro.


Latin America News Headlines – Yahoo! News





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Yahoo revenue rises on search advertising






(Reuters) – Yahoo Inc posted a 4 percent gain in net revenue to $ 1.22 billion in the fourth quarter, when an increase in search advertising sales offset weakness in the Web portal’s display ad business.


The company forecast net revenue — which excludes fees shared with partner websites — of $ 1.07 billion to $ 1.1 billion in the current quarter, trailing the $ 1.1 billion that Wall Street analysts expect on average.






Shares in Yahoo, which is trying to stave off declines across much of its business and revive growth, were up 1.5 percent in after hours trade. They had risen 4.5 percent before the revenue projections were disclosed on an analysts’ conference call.


“We got the revenue acceleration we were hoping for. Display was down, but search is doing better” said Sameet Sinha, an analyst at B. Riley Caris.


“As long as in the near-term things are not bad, I think the stock will generally act positively while we wait for Marissa Mayer to deliver,” said Sinha.


The company said on Monday its fourth-quarter net income was $ 272.3 million, or 23 cents per share, versus $ 295.6 million, or 24 cents per share in the year-ago period.


Excluding certain items, Yahoo said it had earnings per share of 32 cents, versus the average analyst expectation of 28 cents according to Thomson Reuters I/B/E/S.


Chief Executive Marissa Mayer is moving to revive the company’s fortunes after several years of declining revenue. Yahoo’s stock has risen roughly 30 percent since she became CEO, reaching its highest levels since 2008.


Yahoo said it repurchased $ 1.5 billion worth of shares during the fourth quarter. Shares in the company were up 1.5 percent at $ 20.61 in extended trading from a close of $ 20.31 on the Nasdaq.


(Reporting by Alexei Oreskovic; Editing by Phil Berlowitz)


Tech News Headlines – Yahoo! News





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The CW orders “The Hundred” drama pilot, two others






LOS ANGELES (TheWrap.com) – The CW has gone post-apocalyptic with its pilot orders.


The network has placed an order for the drama pilot “The Hundred,” based on the upcoming book series by Kass Morgan (which has received an initial two-book order from Little, Brown).






The pilot will be set 97 years after a nuclear war has destroyed civilization, when a spaceship housing humanity’s lone survivors sends 100 juvenile delinquents back to Earth in hopes of possibly re-populating the planet.


Jason Rothenberg is writing as well as executive producing the project, which comes from Warner Bros. Television and Alloy Entertainment, with Alloy’s Leslie Morgenstein and Gina Girolamo also executive-producing.


The network has also ordered the sci-fi drama “Oxygen,” about a romance between a human girl and an alien boy.


“Passion and politics threaten the peace and an epic romance ignites between a human girl and an alien boy when he and eight others of his kind (The Orion 9) are integrated into a suburban high school ten years after they and hundreds of others landed on Earth and were immediately consigned to an internment camp where they’ve been imprisoned ever since,” a logline for the show explains.


Meredith Averill (“The Good Wife”) is writing and executive-producing “Oxygen,” which comes from CBS Television Studios, Ole Productions, Isla de Babel SL and 360 Powwow LLC.


Josh Appelbaum, Andre Nemec, Scott Rosenberg, Richard Shepard, Bryan Furst, Sean Furst and Daniel Gutman are also executive producing.


Finally, “Reign” promises to tell the “previously unknown and untold story of Mary Queen of Scots,” detailing the secret history of survival at French Court “amidst fierce foes, dark forces, and a world of sexual intrigue.” Stephanie Sengupta (“Hawaii Five-0″) and Laurie McCarthy (“Ghost Whisperer”) are writing and executive producing the pilot, which is being produced by CBS Television Studios.


TV News Headlines – Yahoo! News





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Salmonella linked to ground beef sickens 16: Centers for Disease Control and Prevention






(Reuters) – Sixteen people across five states have fallen ill from Salmonella poisoning, several from a raw ground-beef dish served at a single restaurant, the U.S. Centers for Disease Control and Prevention said on Monday.


Local, state and federal health and regulatory officials said the likely cause of the Salmonella Typhimurium outbreak was Jouni Meats Inc and Gab Halal Foods, both of Michigan.






Most the people sickened were in the Midwest – two in Illinois, one in Iowa, three in Wisconsin and nine in Michigan, where the meat shops are located, the CDC said. One sick person was identified in Arizona.


Seven people reported eating a raw ground-beef dish at a restaurant, the CDC said, adding that roughly half of the people were hospitalized, although none died.


“The restaurant served raw beef to customers and had acquired the raw beef from two retailers,” the CDC said in a statement, without naming the restaurant.


Last week Jouni Meats recalled approximately 500 pounds of ground beef and Gab Halal Foods recalled about 550 pounds of ground beef, the CDC said.


Jouni Meats sold the meat, used to make a raw Middle Eastern ground beef dish called kibbeh, without a label between December 4 and 9 to customers, including a Detroit-area restaurant, according to the U.S. Department of Agriculture.


Gab Halal Foods also sold bags of ground beef in clear plastic at around the same time to customers and the same restaurant, located in Macomb County, local and federal officials said.


Khalil Jouni, owner of Jouni Meats, on Monday said he believed the ground beef had been safe when he distributed it and may have become tainted somewhere down the line.


“I produce meat to other restaurants, and my customers, and none of them got sick,” Jouni said. “I make sure everything is very clean.”


Gab Halal Foods, which Jouni said is owned by his brother, could not be reached for a comment.


The illness from the food-borne organism usually causes diarrhea, fever and abdominal pain. It can be fatal for the elderly, young children and those with weakened immune systems.


The CDC warned people not to eat raw or undercooked beef and to return or throw out recalled products.


“This is especially important for children under the age of 5 years, older adults and people with weakened immune systems because these people are at a higher risk for serious illness,” the CDC said.


(Reporting By Eric M. Johnson; Editing by Cynthia Johnston, Maureen Bavdek and Bob Burgdorfer)


Health News Headlines – Yahoo! News




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‘Two budgets’ should end, MPs say







MPs have called on the Treasury to re-establish the importance of a single annual Budget.






The Treasury Committee said in a report on Tuesday that the Autumn Statement has increasingly taken on the character of a second Budget.


Having two budgets created uncertainty and costs for business and the economy, MPs said.


The Treasury said it would consider the report “and respond in due course in the usual way”.


“The primacy of the Budget as the main focus of fiscal and economic policy making should be re-established,” the MPs said.


The Autumn Statement was traditionally used for an update on the general state of public finances and the wider economy.


But since Gordon Brown, chancellors of the exchequer have increasingly used the Autumn Statement to announce changes to tax and policy.


The MPs’ report said: “The Autumn Statement is not, nor should it be, a second Budget. In recent years it has come to read like one.


“The implications are that business and the economy needs to react to two periods, not one, of potential uncertainty and change. A return to a position of one Budget in the spring, and an updating statement in the autumn, would be desirable.”


As well as complicating things for business, two budgets makes it more difficult for the Treasury Committee to scrutinise adequately tax changes and their impact before another set of policies is announced, MPs said.


“We believe this to be an important issue of principle going to the heart of Treasury Ministers’ accountability to Parliament.”


‘Over-optimism’


Last year’s Budget was on 21 March, followed by an Autumn Statement nine months later, which in turn was only three months before this year’s Budget this March.


The MPs also questioned the track record of the Office for Budget Responsibility, set up in 2010 to provide independent forecasts for the economy and public finances.


The OBR is required by statute to issue two economic and fiscal forecasts a year. However, the MPs said its forecasts have been “biased to over-optimism” with most forecasts having to be revised downwards.


“There are good reasons for having a single substantial annual review of the fiscal and economic state of the country, not least to enable the subsequent presentation to Parliament of proposed tax measures and of estimates of expenditure, the MPs said.


They added: “The OBR should do more to ensure that there is greater public understanding of the limitations and purpose of forecasting, and more realistic expectations of what forecasting can deliver.”


The OBR, along with the Treasury, said they would consider the report.


BBC News – Business





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Witch-hunting “Hansel & Gretel” wins box office






(Reuters) – A grown-up “Hansel & Gretel” grabbed the weekend box office title, pulling in $ 19 million in U.S. and Canadian ticket sales with its reinvention of the fairy tale characters as fierce bounty hunters.


Hansel & Gretel: Witch Hunters” knocked last weekend’s winner, low-budget horror flick “Mama,” into second place. “Mama” earned $ 12.8 million from Friday through Sunday, according to studio estimates, followed by “Silver Linings Playbook” with $ 10 million.






CIA drama “Zero Dark Thirty” came in fourth with $ 9.8 million.


Jeremy Renner and Gemma Arterton star in “Hansel & Gretel” as crossbow-wielding adult siblings who travel the world taking out evil witches. MGM and Viacom Inc’s Paramount Pictures produced the action comedy for about $ 50 million. Paramount had predicted opening weekend sales in the high-teens or low $ 20 million range.


Don Harris, Paramount’s president of distribution, said the film performed well despite the very cold temperatures and snow that hit the eastern United States.


“We are pleased that we were on our number on a worldwide basis. It looks like we are on or exceeding our numbers but we did get dinged with the weather on Friday,” he said in an interview.


“The impact of the weather was certainly more than I had predicted.”


“Mama” features Jessica Chastain as a woman forced to take care of two orphaned nieces who have been living in the woods. The $ 15 million production has now earned $ 48.6 million at U.S. and Canadian theaters through two weekends.


Chastain also stars in “Zero Dark Thirty” in an Oscar-nominated role as a dogged CIA agent searching for al Qaeda leader Osama bin Laden. The best picture nominee, which has sparked debate over depictions of torture, has grossed $ 69.9 million since its release in late December.


Silver Linings Playbook” stars Bradley Cooper as a former mental patient trying to rebuild his life with the help of a young widow played by Jennifer Lawrence. Total sales for “Silver Linings” reached $ 69.46 million. The movie, Cooper, Lawrence and co-star Robert De Niro are all nominated for Oscars.


New crime thriller “Parker” finished in fifth place, taking in $ 7 million at domestic theaters. The film is based on a series of novels by Donald E. Westlake and stars Jason Statham as a thief seeking revenge against a crew that double-crossed him. Jennifer Lopez plays a woman who helps with his mission.


“Movie 43,” a film with an ensemble of Hollywood directors and stars, was in seventh place, according to Hollywood.com, very close behind “Django Unchained.”


The film is a series of interconnected short movies following a washed-up producer as he pitches hilarious and insane story lines featuring some of the biggest stars in Hollywood, including Hugh Jackman, Seth MacFarlane, Kate Winslet and Dennis Quaid. Privately held Relativity Media produced the film for about $ 6 million.


“Mama” was distributed by Universal Studios, a division of Comcast Corp. Sony Corp’s movie studio released “Zero Dark Thirty.” “Parker” was released by independent studio FilmDistrict. The Weinstein Co distributed “Silver Linings Playbook.”


(Editing by Bill Trott)


Movies News Headlines – Yahoo! News





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Thousands march in Paris to support gay marriage






PARIS (Reuters) – Tens of thousands of people marched through Paris on Sunday to support the French government‘s plan to legalize gay marriage and adoption, but the turnout fell well short of a mass demonstration against the project two weeks ago.


Police estimated total attendance at about 125,000, while organizers put the number at 400,000. Two weeks ago, organizers of the anti-gay marriage protest claimed turnout of one million, while police put the number at 340,000, an unusually high turnout even in protest-prone France.






“There is a big difference between today’s march and the one two weeks ago, which is that this demonstration is one of brotherhood, not of hatred,” Paris mayor Bertrand Delanoe, who is openly gay, said on French television.


“The majority of French people wants all couples to have equality in love and parenthood,” Delanoe added.


On Tuesday, French parliament starts a two-week debate about the planned law change, which would be one of the biggest social reforms since abolition of the death penalty in 1981.


The government‘s socialist and green majority is determined to pass the legislation, against which the conservative opposition has lodged some 5,000 amendments.


On Saturday, an Ifop poll showed the proportion of French supporting legalization of same-sex marriage has risen to 63 percent from 60 percent in early January and December, despite weeks of protest against the planned reform.


Support for adoption rights for gay couples also rose by 3 percentage points, although the country remains divided on the issue, with 49 percent in favor, according to the firm.


Several government ministers took part in the march and will be among a string of celebrities at a party organized by Pierre Berge, partner of late fashion designer Yves Saint Laurent.


Former French Health Minister Roselyne Bachelot was one of the few conservative politicians to support the marchers.


“Nobody has anything to fear from this step forward,” she told BFM television.


Henri Guaino, a former top adviser to President Nicolas Sarkozy, told BFM the proposed law was a “a denial of nature” and called for a referendum on the issue.


“It is a negation of the difference between the sexes,” he said.


Opponents of gay marriage and adoption, including most faith leaders in France, have argued that the reform would create psychological and social problems for children.


Same-sex weddings are legal in 11 countries including Belgium, Portugal, the Netherlands, Spain, Sweden, Norway and South Africa, as well as nine U.S. states and Washington D.C.


(Reporting by Geert De Clercq; Editing by Jason Webb)


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The Boom Times Return to Dubai






Rewa Zeinati, a freelance writer in Dubai, has noticed more business cards with photos of scantily clad women offering massages piling up on her car windscreen lately. “Sometimes I’m away for 30 minutes and come back to find a stack of them,” says Zeinati. “I’ve definitely seen an increase this year.”


With Dubai’s economy posting its fastest growth since 2007, residents also say it’s harder to find taxis, book restaurants, and get places in private schools for their children. Residential rents climbed about 17 percent last year, while the volume of non-oil trade hit record highs. “Hotel occupancy is up quite significantly and the airport is crazy,” says Abdul Kadir Hussain, chief executive at Mashreq Capital (DIFC), which runs the region’s best-performing fixed-income funds. “If you go to Jebel Ali Free Zone, rents are up and it’s fully occupied. That part of the model is working very well.” The free zone is one of the world’s largest transshipment points for containerized cargo.






The drivers of Dubai’s new growth are services, legal and otherwise, and exports such as electronics, which are shipped out of the free zone. This stress on services and exports suggests any new Dubai boom won’t be a repeat of the debt-fueled real estate bubble that crashed when the global crisis hit in 2008.


In the first half of 2012, construction shrank 2.5 percent from a year earlier while earnings from hotels and restaurants grew 16 percent. The economy expanded 4.3 percent in 2012, according to preliminary estimates. Dubai’s stock index gained 12 percent in the past month, four times the advance of the MSCI Emerging Markets Index. Shares of Emaar Properties (EMAAR), which owns Dubai Mall, the world’s largest, jumped 18 percent. The prices of bonds issued by Emirates airline and the Jebel Ali Free Zone are doing better than ever.


Concerns linger that the economy could overheat again. The Dubai government announced plans in November to build a shopping center even bigger than Dubai Mall. Such mega-projects led the emirate to rack up about $ 113 billion of debt before the crash. Abu Dhabi, the richest of the seven sheikdoms in the United Arab Emirates, had to engineer a $ 20 billion bailout of Dubai in 2009. Dubai still has about $ 40 billion of debt due by the end of next year, according to Bank of America Merrill Lynch (BAC).


The UAE’s central bank, based in Abu Dhabi, has capped mortgage lending at 70 percent of a property’s value for Emiratis and 50 percent for foreigners, with even lower lending caps for second mortgages. “Abu Dhabi doesn’t want to bail out Dubai again,” says Emad Mostaque, a strategist with Noah Capital Markets in London. UAE authorities are trying to “keep their economy as stable and bulletproof as possible when they see instability all around them.”


The wave of uprisings in Arab countries has hurt some of the region’s economies. Dubai, which escaped unrest, may be among the beneficiaries. “Political stability makes it a very attractive place for travelers in the region to spend their time and money,” says Khatija Haque, senior economist at lender Emirates NBD.


Finance is playing a smaller part than it did during last decade’s boom; the sector grew only 3.2 percent in the first half of 2012. Still, Dubai plans to boost the industry, partly by launching a sharia finance council that will make sure certain financial products and contracts conform to Islamic law. Such a council will help attract more wealth from the world’s 1.6 billion Muslims.


As recovery takes hold, Mashreq Capital’s Hussain is struggling to find early-morning slots at his favorite golf course. “In the last three winters I could just drive up to my club, get out, and play” he says. This year, after twice being turned away because the course was full, “I decided to call two days before. And they said ‘yeah, but not till 9:30.’ ”


The bottom line: While Dubai is growing again, the emirate still has to pay off $ 40 billion in debt at the end of next year.


Businessweek.com — Top News





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