The fate of Dubai, it seems, is in the hands of the gods. In a world where perceptions matter more than reality, Dubai has been hit hard and heavy by the present financial crisis. Ever since the news of Dubai World’s liability hit our screens, our lives have never been the same. The news of Dubai World’s US$60 billion debt made headlines all across the globe, and the world waited with bated breath about what would happen next.
Given that Dubai has the world’s sixth largest foreign exchange reserves it would be wise not to worry. Dubai can pick itself up from any financial mess without more than a shrug, and that’s a fact. Therefore the Western nations are wrong to think that Dubai or the UAE is on the brink of another financial disaster. Far from it, the current scenario presents many opportunities to pick up properties at bargain prices.
Life in Dubai has certainly been affected by the downturn in the economy. On the wings of this storm, many expatriates in the housing and finance sectors have been forced to leave Dubai. Attendance in many Dubai schools has dropped, with the outflow of expatriates. The loss has been felt acutely, prompting some schools in Dubai to even offer schemes where parents can pay fees for their children in easy installments.
Even Dubai property management experts seem nonplussed. But even in the face of these realities, there are profits to be made. Some of the cash hungry investors are keen to relinquish their holdings in the property sector and are eagerly looking for buyers for Dubai apartments and Dubai holiday apartments. Even the owners of some Dubai hotels and apartments have resorted to offering their rooms on discount, depending on how long you would want to rent it for. The longer the stay, the more the discount- and free breakfast is usually included.
The latest news is that the fear of Dubai World defaulting has been averted. There is a meeting on the cards with its creditors next week, at which it will be proposed to restructure US$26 billion of its repayments for the next six months. With that done, Dubai World will have to gear itself up to match its liabilities with its assets, may be divesting some of its properties and holdings the world over. That may be likely to cause a shakeup in some part of the Western world. Quite well deserved it will be too, considering all the hue and cry that the West has raised over this issue.
Back in Dubai, there are still a number of things that can be done before Dubai can truly bounce back for the long term. The three year residence visa, which had drawn many people into investing in Dubai rent, has been replaced by a six monthly multiple entry visa, which is not only more expensive but also involves a lot of tedious paperwork. This sends negative signals to potential investors.
If the Government offers incentives to companies to establish shops in the UAE, commercial activity will get a boost, and in turn create job opportunities, increase consumer spending and multiply housing needs. Similarly financial institutions and trading companies add to the flow and circulation of wealth in an economy. But more than ever, clear and transparent regulations will ensure that both buyers and sellers are protected at all times.
Given that Dubai has the world’s sixth largest foreign exchange reserves it would be wise not to worry. Dubai can pick itself up from any financial mess without more than a shrug, and that’s a fact. Therefore the Western nations are wrong to think that Dubai or the UAE is on the brink of another financial disaster. Far from it, the current scenario presents many opportunities to pick up properties at bargain prices.
Life in Dubai has certainly been affected by the downturn in the economy. On the wings of this storm, many expatriates in the housing and finance sectors have been forced to leave Dubai. Attendance in many Dubai schools has dropped, with the outflow of expatriates. The loss has been felt acutely, prompting some schools in Dubai to even offer schemes where parents can pay fees for their children in easy installments.
Even Dubai property management experts seem nonplussed. But even in the face of these realities, there are profits to be made. Some of the cash hungry investors are keen to relinquish their holdings in the property sector and are eagerly looking for buyers for Dubai apartments and Dubai holiday apartments. Even the owners of some Dubai hotels and apartments have resorted to offering their rooms on discount, depending on how long you would want to rent it for. The longer the stay, the more the discount- and free breakfast is usually included.
The latest news is that the fear of Dubai World defaulting has been averted. There is a meeting on the cards with its creditors next week, at which it will be proposed to restructure US$26 billion of its repayments for the next six months. With that done, Dubai World will have to gear itself up to match its liabilities with its assets, may be divesting some of its properties and holdings the world over. That may be likely to cause a shakeup in some part of the Western world. Quite well deserved it will be too, considering all the hue and cry that the West has raised over this issue.
Back in Dubai, there are still a number of things that can be done before Dubai can truly bounce back for the long term. The three year residence visa, which had drawn many people into investing in Dubai rent, has been replaced by a six monthly multiple entry visa, which is not only more expensive but also involves a lot of tedious paperwork. This sends negative signals to potential investors.
If the Government offers incentives to companies to establish shops in the UAE, commercial activity will get a boost, and in turn create job opportunities, increase consumer spending and multiply housing needs. Similarly financial institutions and trading companies add to the flow and circulation of wealth in an economy. But more than ever, clear and transparent regulations will ensure that both buyers and sellers are protected at all times.
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