03-18-2009, 03:02 PM
Let's solve the mystery of whats going right and what is it that's wrong. I am thankful to kamranACA for clarifying my point in detail, since I am not an expert on economic matters nor do I possess strong communication skills. Since we all are in a forum so we all respect each other's point of view and criticism ofcourse is very healthy.
Let's start with what's latest in news. I did a little research on it. Sumaira asked for specifics so Ill try my best to bring some points to table.
BBCS NEWS MARCH 17, 2009
Dubai has issued $10b to UAE to ease the liquidity crisis and the main reason behind it was "TO PAY OFF MULTI BILLION DEBT IT ACCUMULATED FOR EXPANSION PROJECTS". Interesting.
So what were those expansion projects? Doesn't it sound like overspending? It is not paying any unemployment benefits to any of its citizens, it doesn't have any defense or related research projects, and I don't remember Dubai sending any shuttle in space.
I may be wrong but doesn't it sound odd when the investment was made by foreigners mostly, as per other members' comments, and even then there is a deficit of close to $1 billion. Dubai hasn't sent any troops to Iraq for war where it could incur billions a month.
Now we turn to human efflux.
Source National Geographic.
1/8 of Dubai population is UAE citizen. Don't sound many to me.
60% of Dubai population is migrant construction workers getting paid $175 dollars a month with segregated camps outside the civilized world of Dubai. Holding passports is a major problem. Again I stress it because it shows the character of a nation with enormous wealth.
If it was foreign investment in construction projects, then I would say foreigners just walked away with their projects either halfway through or completed but no buyer. So property might be owned by Dubai's government, it might auction it (first after finding a buyer) or whatever. It also spread losses to Pakistan btw, because Pakistani investors were heavily invested in real estate in Dubai.
The biggest factor in my opinion will be consumer confidence, will it recover after such a disaster? I personally know people who invested in Dubai and lost fortunes just because of these idiotic analyst reports and overblown real estate return reports. Would people still invest in real estate in Dubai? That is still to be seen. If I was any of the sufferers I personally would never invest in Dubai. Also, what will be the next boom? I doubt it ll be real estate. So what will attract investors now. Let's dig it.
Investor left off projects might be taken over by some new entrants in the market and might help relieving banks. But again no credit for new entrants, banks have tight lending policies, we all have seen results of cheap credit.
Let's move on to where else has Dubai invested itself. 20% stake in NASDAQ since 2007. LSE another place where its at.
GCC markets down 57% in 2008.
I think further discussion will make my post longer. Will try to get update on further changes.
Let's start with what's latest in news. I did a little research on it. Sumaira asked for specifics so Ill try my best to bring some points to table.
BBCS NEWS MARCH 17, 2009
Dubai has issued $10b to UAE to ease the liquidity crisis and the main reason behind it was "TO PAY OFF MULTI BILLION DEBT IT ACCUMULATED FOR EXPANSION PROJECTS". Interesting.
So what were those expansion projects? Doesn't it sound like overspending? It is not paying any unemployment benefits to any of its citizens, it doesn't have any defense or related research projects, and I don't remember Dubai sending any shuttle in space.
I may be wrong but doesn't it sound odd when the investment was made by foreigners mostly, as per other members' comments, and even then there is a deficit of close to $1 billion. Dubai hasn't sent any troops to Iraq for war where it could incur billions a month.
Now we turn to human efflux.
Source National Geographic.
1/8 of Dubai population is UAE citizen. Don't sound many to me.
60% of Dubai population is migrant construction workers getting paid $175 dollars a month with segregated camps outside the civilized world of Dubai. Holding passports is a major problem. Again I stress it because it shows the character of a nation with enormous wealth.
If it was foreign investment in construction projects, then I would say foreigners just walked away with their projects either halfway through or completed but no buyer. So property might be owned by Dubai's government, it might auction it (first after finding a buyer) or whatever. It also spread losses to Pakistan btw, because Pakistani investors were heavily invested in real estate in Dubai.
The biggest factor in my opinion will be consumer confidence, will it recover after such a disaster? I personally know people who invested in Dubai and lost fortunes just because of these idiotic analyst reports and overblown real estate return reports. Would people still invest in real estate in Dubai? That is still to be seen. If I was any of the sufferers I personally would never invest in Dubai. Also, what will be the next boom? I doubt it ll be real estate. So what will attract investors now. Let's dig it.
Investor left off projects might be taken over by some new entrants in the market and might help relieving banks. But again no credit for new entrants, banks have tight lending policies, we all have seen results of cheap credit.
Let's move on to where else has Dubai invested itself. 20% stake in NASDAQ since 2007. LSE another place where its at.
GCC markets down 57% in 2008.
I think further discussion will make my post longer. Will try to get update on further changes.