Dubai - The past and the present.

[Centurion]

Tragic revelation that tells the tale of the Dubai fairytale. I smell a realestate crash around the corner. Although the realestate industry in Dubai has boomed during the recent years, most of the property has not actually been purschased by settlers but instead speculators who simply resell the property before they have even stepped into it.

Sure Dubai earns a great deal of income from their massive port and the tourism industry. Articial growth of the emirate will bring the economy on its knees eventually as there is not much to move into Dubai for except for their massive service sector. What Dubai needs if it is to sustain healthy growth is a manufacturing industry coupled with affordable property for the middle class.

Dubai's debt might be astronomical but I'm adamant that their neighbouring emirate, Abu Dhabi will limp in with extended credit of help pay some of the debt off. After all, Dubai has not only been a gate way to UAE but to the entire Gulf region. If Abu Dhabi doesn't limp in then their might as well change the name to Ununited Arab Emirates.

 

[kovachian]

Looks like the country that's been forestalling the worldwide economic crisis for the past year, is just now beginning to come to grips.



Later Dubai, it was nice knowin' ya.

 

[Cashmere]

Dubai bankruptcy is a taste of things to come | BK7.com - Bankruptcy Questions & Answers

 

[klier]

If Abu Dhabi doesn't limp in then their might as well change the name to Ununited Arab Emirates.

Heh. Abu Dhabi will soon have no money for themselves anymore.
Next up will be companies like Emirates Airlines. We will soon read they cancelled the A380 orders, and after that we will read the airline doesn't exist anymore.
What goes up so fast will come down again just as fast.

 

[Centurion]

Heh. Abu Dhabi will soon have no money for themselves anymore.
Next up will be companies like Emirates Airlines. We will soon read they cancelled the A380 orders, and after that we will read the airline doesn't exist anymore.
What goes up so fast will come down again just as fast.

This will serve as a wake up call for the UAE to slow down a bit. As far as money goes, the country has not much to worry about. The 7th largest oil producing company belongs to Abu Dhabi which is why Dubai has been granted near unlimited credit.

However, I do worry that this 60 billion debt is just the tip of the iceberg with bigger debts beneath the surface. The construction industry in UAE is worth $350 billion alone and if it comes to a slow down it will have devastating effects on their economy. Let's wait until next week, I'm sure more is to be reveald as investors are biting their nails in suspense over whether or not to pull their money out of what everybody thought was a recession-proof country.

 

[EnI]

We have seen the past & the present ... so how will the future look like?

Mind the oil exporting companies have big troubles due global recession - since their expenditures were set for the $90+ oil price (per barrel) & healthy & working global banking system. Due to low oil price, they have quite some troubles with their national budgets, and paying off the debts used for extensive domestic & foreign investments. As said: only domestic investments in ME countries are worth several hundreds of USD billions, together with foreign ones I'm sure the figure exceeds a trillion USD.

When / if the ME states' finances collapses, the whole world will dive into deep depression. Not to mention there will be huge pressure on oil prices.

Mind that ME countries are big buyers of US state bonds. No money in ME, no US state buyers, no money for US - big financial crisis in US - followed by big financial crises in the world. Followed by economic collapse. War? I hope not. In the end: new order, with card very mixed. New world leaders. World currency? Perhaps.

IMO the UN need to form a global currency (via WB & IMF), and G20 becoming a permanent UN economic council. And in the end UN can declare Moon, and the whole Solar system as the property of UN, and using that property as a base for global currency. etc In the end we can declare the whole Universe as UN property, and a base for the global currency. And since universe is limitless, so can be global monetary system on Earth. All we need is the right economic theory & some crazy enough leaders to support such idea. And the live in constant progress - untill the end of universe.

 

[Deleted member 25]

War is very likely i think.

 

[EnI]

War is very likely i think.

Global one between world powers, or numerous localized violent excesses by local extremists trying to get in power?

IMO the latest. Enough to make the world unstable, and unsafe globally (increased crime rates etc).

But i guess all will be OK until we have MTV with Britney, Lady GaGa & Co. Like a playing band on the sinking Titanic.

 

[Centurion]

I guess 2010 might not be so bright after all. Just when Italy, France and Germany have climbed out of recession bad new hits. There is considerable sums of money invested into Dubai. Starbucks, Dell and many fortune 500 companies have jumped on the band wagon and expanded heavily into the area. Porsche's biggest dealership is in Emirates.

Further more, London's luxury sector lives off UEA and Kuwait wealth. If the rich from GCC region stop their London tourism and shopping sprees then high-end department stores and boutiques will see great drops in revenue next year. Now developed nations will be more cautious about investing in emerging markets. Kuwait and Quatar will soon have to answer questions about their economies.

 

[Cashmere]

Porsche's biggest dealership is in Emirates.

Incorrect, it is actually in Randburg, South Africa

 

[martinbo]

OT: ^It's not in Randburg, it's in Paulshof - a suburb close to Fourways. Two blocks away from my office it is. And new 997 GT3 Mk2 is in the window.

On topic: remember the parable about the wise man who builds his house on rock and the fool who builds his house on sand. Ironic.

 

[Matt]

I know for a fact Dubai is in big financial trouble (Especially dubai world wide)

 

[Yaz]

Some good news from Dubai. Tomorrow is the official opening day of Burj Dubai. At 818m (2684ft), it's the tallest free standing structure in the world. Hieght isn't official yet but that's what's been posted on the internet.

I personally can't wait to visit the observation deck on the 124th floor next time I'm in Dubai.

Check out the images from top of the spire. It's breathtaking :

Album:
Picasa Webalbumok - Imre - Burj Dubai si...

Video:

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Pictures by Imre of skyscrapercity at:

#TOPPED OUT: BURJ DUBAI, 162F Mixed-Use, 818m (DBD) - Page 432 - SkyscraperCity

Another video from YT:

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