Is Dubai’s Party Over?

Its funny how Dubai and Quatar and Riyahd etc.. are all competting with each other to have the highest buildings and impress the rest of the world when half their people are starving

Some Property Prices Might have lost up to 50% of there value the truth is prices have gone up 600% since 2003, An example of this is it you bought a house in the Medows for 1.3m DHS (300 thousand Dollars) the peak reached in 2008 was 6M DHS (1.6 Million dollars). So if the correction caused a 50% drop in Property prices which they have not the Market price would be 3M DHS (800,000 Dollars) That is still over 100% return on investment. There is no asset class purchased in 2003 that still retains this value in todays Market. Given that Dubai is the regional and Continental Leader and still is the most preferred place to live and do bussiness in the developing world It should maintain it lead and be the first to turn around. I think Dubai is cheap esspecially that no one can find the capital to do the same infrustructure projects as Dubai has over the last 10 years.

Dubai Came to symbole he benifits of a global economy, and unfortunatlly its downfalls. On the other hand Dubai has invested intself unlike other cities or even countries. The City state took full advantage of the BOOOM and has reaped the benifit. No other country or state in the world has a chance to catch up to Dubai, the prjects achived by Dubai Like the Palm, Burj Dubai (tallest Building on earth), Burj Al Arab ect ect ect.... are not fesable and probably will not be for the next 10 years. All this infrustructure in Dubai is an investment in the future.

One interesting point theat most people are missing is that most of these projects have been already sold and money collected. People might leave Dubai but building cannot. In reality the fact is that Dubai is the center of bussiness and the place to be based for managment regional offices of multinationals in the middle east and africa, and the only developed city state spanning All of Africa Middle East and Near Asia.

dubai got supersaturated a year ago -when supply overruns demand then do not blame the economy -it is natural evolution -no use crying over spilt milk

This article I want to dedicate to the current economic situation in UAE , in my company apart from accounts I am also handling the treasury department ( me and my boss) and we have business spread over entire UAE and what we have noticed in the past 8 weeks is that

There is no problem with Abu Dhabi, fund flow is fine but with respect to Dubai I do not share the same view, Big Big companies are defaulting in payments and chqs are bouncing of those reputed companies which leaves me in jittery , I am worried with all my relatives who are working in Dubai, if you think that the mighty companies ( I do not want to name) owe us the money what about kaka poka companies ?

I also heard that many projects have been stalled in Dubai due to liquidity crunch.

Recession is staring at this part of the world also.


Bye for now

K RANGANATHA ACHARYA
Dt 7-12-2008

How can a Dubai millionaire enjoy life? For religious reason, no drinking, no porn, no holding hand nor kissing of opposite sexes in public. Building billions of dollars of...sand castles? Come on, millions of people are dying of hunger all around the world