StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Current and Future Financial Situation in Dubai - Essay Example

Cite this document
Summary
The question at hand is where does Dubai go from here. Since the beginning of the worldwide financial crisis in October of 2008 Dubai has seen severe consequential effects in every sector of its economic political and social life. Many believe that these effects will continue to negatively impact to buy and are quite pessimistic about its future prospects.
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.9% of users find it useful
Current and Future Financial Situation in Dubai
Read Text Preview

Extract of sample "Current and Future Financial Situation in Dubai"

Download file to see previous pages

However most of this population growth was due to the importation of huge numbers of foreign workers, mainly Indians and Pakistanis, who labored hard to develop Dubai but did not really reap the benefits of the explosive growth that their labor made possible. And of course following the events of 1973 the oil industry became of paramount importance to the subsequent growth and development of Dubai. At that time Sheikh Maktoum resolved to build a city that would be a center of tourism and financial services, taking advantage of up cash and talent from across the world.

He invited the world to come tax-free - and they came in their millions, swamping the local population, who eventually came to make up just five percent of Dubai's population. A city seemed to fall from the sky in just three decades, whole and complete and swelling. At the same time Dubai experienced explosive growth in its position as a center of banking, and tourism in the Gulf. And it also became an important strategic asset to the United States and to the Arabian Peninsula in general. Yet today with the global retrenchment that is currently going on Dubai is faced with the following questions: one, is this pullback that has gained so much media attention since September a temporary phenomenon , two, is it a moderate recession of limited duration that will soon lead to a continued cycle of growth and development Or, even more disturbingly, are the developments that we are witnessing today the precursor to things even more disturbing than a temporary recession of a year or two but perhaps be a development that is only beginning and which may lead to consequences unimaginable even a year ago.

Current economic conditionsThere has been a steep real estate market decline since fall of 2008.Last year at this time vacant commercial office space in Dubai was hard to find.and the vacancy rate was barely 1%. Yet today, only eight months later, many of the new developments towers completed in recent months that were built in expectation of a ever continuing boom stand empty. Jumeriah Lakes, the Dubai Technology, Electronic-Commerce and Media Free Zone (TECOM) , Bur Dubai, the Business Bay and Financial Centre districts, Deira, and others stand gleaming and new, but empty.

In contrast to last year, the vacancy rate for commercial real estate now stands 16%, and is climbing. Even so, while the vacancy rate soars, new buildings whose construction began at the peak of the boom are being completed every day. Dubai is littered with office towers that will not see paying tenants for perhaps years and also with new hotels that will be barely filled with guests. Morgan Stanley reports that in recent months $260bn of property projects have been binned or delayed. In addition, residential units and villas are seeing declining valuation and rents with homes on super chic Palm Jumeirah down 50% to 60%.

There are even tales, reported by the New York Times, that Palm Jumeirah is sinking and that cockroaches are coming out of the taps of its seven-star hotel.You can't underestimate the impact of the credit market situation and the fact that a lot of Dubai's real estate development was built on an era of cheap debt and easy

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Current and Future Financial Situation in Dubai Essay”, n.d.)
Current and Future Financial Situation in Dubai Essay. Retrieved from https://studentshare.org/miscellaneous/1503236-current-and-future-financial-situation-in-dubai
(Current and Future Financial Situation in Dubai Essay)
Current and Future Financial Situation in Dubai Essay. https://studentshare.org/miscellaneous/1503236-current-and-future-financial-situation-in-dubai.
“Current and Future Financial Situation in Dubai Essay”, n.d. https://studentshare.org/miscellaneous/1503236-current-and-future-financial-situation-in-dubai.
  • Cited: 0 times

CHECK THESE SAMPLES OF Current and Future Financial Situation in Dubai

Feasibility Study to explore the potential viability of a business in the UAE

It has an area of 67,300Km2, followed by dubai with 3,900Km2 and Sharjah occupy an area of 2,600 Km2 (NEYADI, 2002).... The emirates include Sharjah, Ras Al Khima, dubai, Ajman, Abu Dhabi, Fujairah and Umm Al Quwain.... The prime minister heads the defense ministry and he is the ruler of dubai.... This implies that, any investment in a hotel industry has to come with financial sacrifice.... It is essential to note that, the projected 3-star hotel and resort stands a better position in developing at a high rate due to the well- established financial backdrop based on sound economic ethics under the management of sound institutions (NEYADI, 2002)....
6 Pages (1500 words) Coursework

The Sudden Economic Crises of Dubai

As far as labor factors are considered there are not many local labors available in dubai.... Realizing the fact that dubai cannot depend on oil perpetually, the ruler of dubai, Sheikh Mohammed Bin Rashid Al Maktoum took a massive restructuring of the… dubai started focusing on becoming a major tourist destination and in an attempt to do so it made huge investments in infrastructure development.... The Burg dubai, Palm Island, and the ski resort stand testimony to the huge However with global recession hitting the world in 2008 all investments came to a halt....
40 Pages (10000 words) Essay

Pros and Cons of Scarcity of Manpower Resources in the UAE

dubai world, dubai media city like big companies are... It should be noted that diversity of workforce is extremely important in current extremely globalized business environment.... Goods such as food and drinks, electronic goods, vehicles etc are tangible resources whereas services like education, healthcare, tourism, business consultancy etc are intangible… UAE is a country which is blessed with immense oil resources whereas it lacks scarcity in manpower resources....
6 Pages (1500 words) Research Paper

International and United Arab Emirates Economics : Case study analysis

The country overall looks in… The economic outlook of the country and its detailed description for the next 3 to 4 years can be given in terms of its current economic growth and whether the Predictions of employment situation as well as inflation can be useful for predicting the future economic situation.... The growth situation of the economy of the country can be accessed in terms of the GDP of the country.... The nominal GDP growth in the upcoming years has been analyzed in the figure below: Oil economy had to suffer for the ongoing financial crisis and the situation is expected to improve with recovery efforts of UAE....
4 Pages (1000 words) Essay

External Environment Analysis of Rio International Company in Dubai

In analyzing Rio International's external environment, we use the following tools: Most of the equipment that are provided by the companies in the food processing industry in dubai are manufactured and imported from Switzerland and Germany.... The government of dubai is involved largely in the key sectors of the economy.... In as much as the company can rejoice and celebrate so many years of existence, there is much that it should do about its environmental factors that directly affect its performance and its future success....
9 Pages (2250 words) Essay

International Trade Growth

ldquo;…following the dubai World debt announcement made last year, a new report by Business Monitor International has predicted… while it expected the UAE to return to growth this year following an estimated 2.... A World Bank “Doing Business” report released in November 2010 ranked dubai as the third best global economy offering the necessary environment for international trading....
9 Pages (2250 words) Essay

Establishing Luxury Housing in Dubai

This work "Establishing Luxury Housing in dubai" demonstrates the business process in dubai.... hellip; Due to the increase in population over the last few decades, the popularity of the need for property in dubai has also increased.... nbsp; Even though the present situation of luxury housing is not topnotch, it is still feasible to start a new luxury housing business because of the dynamic nature of the economy and the demand for houses (Life in dubai) allows customers to indulge in complete luxury....
7 Pages (1750 words) Coursework

Commercial Bank of Dubai in the United Arab Emirates

The financial year 2009 was quite challenging for CBD as economic recession was at its peak and major banks in dubai had taken sweeping measures to cope up with the crisis.... The paper “Commercial Bank of dubai in the United Arab Emirates” seeks to evaluate a public shareholding company, formed in the year 1969.... hellip; The author states that the Commercial Bank of dubai has successfully made its position in the banking industry by effective performance....
9 Pages (2250 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us