After more than a decade of double-digit economic growth, Dubai, the financial hub of the Arab world, is feeling the pains of the global financial plunge. The city had an easy ride when oil prices were sky-high, world markets were supportive and foreign investment was lubricating its wheel of fortune.
Now that credit is tight, the durability of the Dubai project is being put to the test.
In spite of initial denial, the impact of the global credit crunch is proving pervasive and has visibly altered confidence in the emirate. The once-booming real estate sector is shaky; the tourist business is losing momentum; and the financial sector and the stock market are racked by negative sentiment. Even the formidable retail sector and the vibrant import/export and re-export trades are not looking reassuring.
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