Impact of Financial Crisis on Dubai -1/3
Saturday, February 20th, 2010 at
1:09 pm
This is a discussion on the future of Dubai in light of the ongoing financial crisis. The emirate was heavily dependent on foreign direct investment (FDI) for its real-estate driven growth and is now struggling to secure financing. PLEASE READ MY COMMENTS ON THE VIDEO BEFORE WATCHING.
Tagged with: arab • boom • bust • Collapse • correction • crisis • development • downturn • dubai • east • Economic • financial • future • growth • middle • model • price • realestate • recovery • survival • survive • uae
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I agree with the observations: (a) Dubai’s failure will have severe impact on the UAE and that oil-rich Abu Dhabi will bail it out if necessary, (b) Dubai has become a global “brand” that will continue to attract tourists, businesses, and investors in future, (c) Dubai overstretched itself in real-estate over the past few years and needs to retrench in this sector, and (d) Dubai will fail only if “globalization” is scrapped in favor of protectionism, capital controls, and closed borders.
-Kashif
What I cant understand is why the Arabs are even talking about default. Ireland (my country) and Iceland didnt even contemplate default. We the Irish taxpayers are forced to pay for companies that fail to the tune of 77 Billion euros or about 100 billion dollars in a country of only 4 million people. Are we been told the truth about how much they really owe and why are the Dubais taxpayers not on the hook as the Icelandic and Irelandic people are
To illustrate how the banks failing have affected Ireland. Im a Ph.D student/researcher the cuts in my researcher education income grants are shocking. In 2007 I got from the Department of Education: $820 per month for living expense, $292 for accommodation, $740 for research materials and $120 for travel. This was a monthly income of $1,972. Today all of these university payments are gone except for $820 living expenses. So in effect over a $1,000 per month of my income is going to the bankers
haha lolo their be coming after your 820 to pay off the bankers for dubai
Let us make it plain to our Western banks. We are not going to let you gamble in Dubai with Gordon Brown and others covering your wild bets with money taken from us, for the benefit of sharp fly-by-nighters and the bed-sheet attired locals with guaranteed no-work jobs.