Oddly
enough, there are certain places that are escaping economic contraction
because they are spending enormously more on the industrial sectors
that seem to be the worst hit. Take Dubai's example. Analysts predict
that because of huge construction projects like the Dubai Metro and
Burj Dubai, the emirate along with the UAE has the momentum to swing
through the global financial crises.
It's exactly the sort of 'out-there' construction schemes (like building the biggest mall in the world right next to the world's tallest building) that Dubai has often been targeted for that are giving the emirate a running start at beating the recession. Analysts credit Dubai's government for dynamic planning that would ensure continued economic growth. And the way Dubai's markets encourage competition, the recession would even prove to provide a beneficial house cleaning because it will force poorly equipped businesses to either change ways or drop out. So in the long run, Dubai's future actually looks brighter than ever.
Added to that is the short term chance of hedging a good bet against the recession tide by capitalizing on lost opportunities. There are a small but growing number of people who are actually spending more money, especially on buying property with the hope of securing long term ROI.
According
to a recent poll by Reuters, real estate prices in Dubai have slumped
38% in certain areas. This means that now is probably the best time to
grab hot properties at nearly half their market value and watch your
investments grow exponentially as the market turns around and credit
starts flowing at normal rates again. If this isn't enough to convince
someone to look at the glass as half full during this financial crisis,
consider the outlook that UAE's inflation rate, which has been growing
for the last 20 years to peak at 13.6% will ease down to around 4.8% as
the prices for commodities and services decrease to incite consumers.
Those who are quick to be critical of falling numbers in property values miss out on the long term opportunities recession periods offer. This is why the sharpest investors and those with the big bucks plan on snatching up as much of Dubai's residential and commercial real estate as they can get their hands on. Consider also that the recession scare has challenged a repatriation of emerging markets, which will make Dubai adopt policies and incentives to further motivate people to establish themselves in its growing market. While even having the most desirable properties in the world has not prevented Dubai from being affected by the recession, the emirate has all the tools necessary to confront and beat the tide by doing what it does best: adapting and dreaming even bigger than before.
Videos References:
Dubai Metro:
Burj Dubai:
Publications:
http://www.arabianbusiness.com/550391-dubai-house-prices-fall-19-in-q4---report
http://www.arabianbusiness.com/550314-saudi-and-uae-will-narrowly-avoid-contraction---analysts
http://www.arabianbusiness.com/550202-dubai-construction-sector-fundementally-stable---experts-
http://www.boston.com/bigpicture/2009/03/scenes_from_the_recession.html
http://dubaimetro.eu/
www.burjdubai.com
www.reuters.com/
It's exactly the sort of 'out-there' construction schemes (like building the biggest mall in the world right next to the world's tallest building) that Dubai has often been targeted for that are giving the emirate a running start at beating the recession. Analysts credit Dubai's government for dynamic planning that would ensure continued economic growth. And the way Dubai's markets encourage competition, the recession would even prove to provide a beneficial house cleaning because it will force poorly equipped businesses to either change ways or drop out. So in the long run, Dubai's future actually looks brighter than ever.
Added to that is the short term chance of hedging a good bet against the recession tide by capitalizing on lost opportunities. There are a small but growing number of people who are actually spending more money, especially on buying property with the hope of securing long term ROI.
Those who are quick to be critical of falling numbers in property values miss out on the long term opportunities recession periods offer. This is why the sharpest investors and those with the big bucks plan on snatching up as much of Dubai's residential and commercial real estate as they can get their hands on. Consider also that the recession scare has challenged a repatriation of emerging markets, which will make Dubai adopt policies and incentives to further motivate people to establish themselves in its growing market. While even having the most desirable properties in the world has not prevented Dubai from being affected by the recession, the emirate has all the tools necessary to confront and beat the tide by doing what it does best: adapting and dreaming even bigger than before.
Videos References:
Dubai Metro:
Burj Dubai:
Publications:
http://www.arabianbusiness.com/550391-dubai-house-prices-fall-19-in-q4---report
http://www.arabianbusiness.com/550314-saudi-and-uae-will-narrowly-avoid-contraction---analysts
http://www.arabianbusiness.com/550202-dubai-construction-sector-fundementally-stable---experts-
http://www.boston.com/bigpicture/2009/03/scenes_from_the_recession.html
http://dubaimetro.eu/
www.burjdubai.com
www.reuters.com/
I am a creative person who enjoyed practicing my profession this past decade I was here. I agree that this recession in Dubai is opening up more opportunities and making us explore untapped areas of growth.
Cheers