50 Billion Dirham Bottle of Confidence. Insecurity Stems From The Land of Foreclosed Homes

Out of the inadequacies that the present crisis has brought to surface, namely reckless loaning practices and detrimentally huge payouts for executives, the 'credit-squeeze' has also shown how countries are reacting and responding to the pressure differently. There's the American bail-out model, an overly simplified reference to the allocation of 700 billion dollars being borrowed against trillions of dollars of debt. Then there's the British answer of guaranteeing deposits by using tax payers' money to buy stakes in troubled financial institutions. Added to this mix is the international effort of cutting the interest rate by one half of a per cent. Yet advisors and policy makers behind all these decisions are still stressing a hard road ahead, and emphasising that no single approach would prove sufficient. This is because the economic market is influenced by plain old speculation as much as it is by solid numbers

In a recent interview on HARDtalk, New York mayor and future favourite for US treasury secretary Michael Bloomberg warned that bail-out schemes will not go far enough to turn the economic tide. Bloomberg's advice was simple: in order for the world to avoid falling into an economic depression like that of the 1930s or worse, people need to be assured that the situation can be controlled. This is the forgotten lesson of globalisation. These economies are so closely linked together that even a rumour across the Pacific Ocean about oil prices jumping sends the local stock markets on a buying spree. And it works the same way when it comes to talk about financial powerhouses on the brink of bankruptcy. This is why it's surprising to note that even with a senior figure like Bloomberg advocating economic reform that goes beyond emergency loans, countries are still slow to grasp the importance of injecting 'liquid confidence.'

The term is the amalgamation of the economic crises' two greatest needs: immediate liquidity and consumer confidence in the market. This is where the government of UAE appears to be ahead of the game. Since emirates like Dubai are built on the foundation of free markets, they are uniquely set up to attract more foreign investment for a rapidly growing consumer base. Not only does Dubai enjoy aggressive credit growth normally found in emerging economies, its government's focus on further capitalizing on this surge through multibillion dollar hotels, resorts, shopping malls, commercial and residential real estate projects all work together to sustain and satisfy its consumer base and provide jobs.

Although Dubai's economic growth is on a scale impressive enough to offset the catastrophic financial losses of countries like the United States, the emirate's leaders are well aware of the fact that in today's global market, no regional economy functions in a vacuum. This is why the UAE government decided to create a 50 billion dirham funding facility for ready access to liquidity.

Since the crises worsened two fold with the lack of moveable funds due to hesitant lenders and, with the sharp fall in market confidence because of panicking spenders, this latest injection of liquid confidence will go a long way primarily as a gesture of good standing. Years of prosperity and strategic investments have guaranteed the emirates more than enough in liquidity reserves.

Dubai's liberal market practices incorporate simultaneous job growth. So, at the moment it appears to be the stark opposite of the US and some afflicted European countries where economic growth has stalled and is being followed by massive job cuts. Strange as it may sound, this economic drama has made it more obvious than ever before that paying attention beyond our own borders might be a solution worth considering.

In a place like Dubai, which already has comprehensive ties to the UAE Central Bank, investments and lending transactions are continuing especially progressively. A sure sign of this is the continuing demand for qualified professionals. Compare the jobs available on Jobs In Dubai's job board to the list of positions at risk in countries affected by the recession and you'll see why an economic crises could also provide new opportunities. So, stake your place with confidence and put up a profile. JID has the tools you need to find your own solution.