THERE was plenty of Schadenfreude when, in late 2009, Dubai was forced to admit it had trouble paying its debts. The brash emirate’s Gulf neighbours quietly hoped to tempt bankers and business people to their rival financial hubs. Now, irritatingly for many, Dubai is showing signs of recovery. A $10 billion bail-out by Abu Dhabi staved off the threat of a big default. The emirate returned to the bond markets in September. Although the issue was unrated, it was heavily oversubscribed.
Certainly, the property market is still suffering. New apartment blocks and office buildings appear with few new occupiers to pay for them. The Burj Khalifa, the world’s tallest building—formerly known as Burj Dubai but renamed in honour of Sheikh Khalifa, Abu Dhabi’s ruler, after the bail-out—is reported to be largely empty. Rents in the Dubai International Financial Centre (DIFC), a glitzy zone for offshore banks, were slashed in December.
But the real economy is not doing badly. Tourists are returning. Trade is apparently growing, particularly with India and China, although sanctions have made it trickier to export to Iran. The expatriate executives who manage most of the private sector are defensive about Dubai. They focus on the positives: thinning traffic jams, lower rents. Local media provide a stream of good news. So what’s the worry?
Dubai has been drowning in crises for 5 years. I think that a little beam of good return is enough for its progress. Dubai economy will stand again only if private sector also works sincerely. No doubt Other cites like Abu Dhbai also help for its economy progress but there is a need is to promote its property sector because mostly foreigners are coming there for permanent living because of business.
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