Sunday 28 August 2011

Painful lessons learnt, brighter days ahead - The National

A dhow sails on Dubai creek as it passes the QE2 docked at Port Rashid in Dubai in 2009. AP Photo

    It was around this time in 2008 that I was gazing out of my top-storey office window at the bustling, vibrant streets and towers of Dubai below. The majestic QE2 was anchored in the shining Arabian Gulf, business was good and the whole country seemed to give off a sense of invincibility; an oasis of everlasting good times awash with opportunity.

    But storm clouds were gathering in the West. The boom was turning to bust and the global media was doing its best to make light of just what was happening to the financial system. We all heard about it, but the general consensus was that we were somehow insulated in the GCC from the brunt of the global financial downturn by the pedestal of petrodollars that formed the base of this "economic miracle".

    How wrong we were. The regional stock markets started to tumble, but it took a while before liquidity in the banks dried up, and with it the engine of Dubai's growth: property. The growth capital being injected into nascent industries in the region was rapidly withdrawn and people were losing their jobs everywhere. The confidence that was once a hallmark of UAE executives disappeared overnight, and the wheels of this vibrant economy stopped turning.


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