Yet Another Blow To Dubai's Economy - Dubai World Requests For “stand Still”

By Author: William King
Total Articles: 365
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Financial distress earlier panicked the US and then made its way through the mushroomed real estate of Dubai. State owned Dubai World requested for delaying its debt obligations worth $60 billion worsened an already dampened world economic condition. The news has not only upset the investor's sentiments but also made them think of new safe haven for their investments. Dubai being considered as one of the leading financial centers of the world with its dexterity and strength has disappointed many. Analysts are still hopeful that this news won't affect the other countries except the few with direct investments in Dubai. Even world leaders have shown confidence in Dubai's ability to bounce back and get on track. One of the most affected countries is believed to be the UK with many of its commercial banks in Dubai. Realists however see this as a major commitment back out from a government owned entity and have started seeing Dubai's future pledges as shaky at best. Optimists on the other hand see it as a temporary scenario for the conglomerate. The logic behind the optimism is its diversification of investments into different sectors ...
... across Dubai from ranging from port management to commodity exchanges.

It is not all bad and there are projects in pipeline that would make a world of differences. There are however lessons to be learnt from this. First the investments for future Dubai projects are in serious doubts due to questions raised on Dubai's future economic growth. Another most important thing is the unplanned growth of population centers without even demand for them in the first place. This break away from an on time payment promise will haunt the future investors of Dubai for quite some time. Efforts have been made by the concerned authorities to immune the property investors from future losses by making effective laws, which is a step in the right direction. A new hope in the market is also expected to be seen after an Irish property firm has launched a multi million dollar fund to buy properties to ease pressure on investors. The choice of properties to be bought by the firm seems to be very choosy, although it will help ease some pressure on supply side of the properties. IMF's recent statement showing its confidence in the parent company of Dubai World Nakheel will also help send positive signals to the market. Significant signs of improvement have started emerging in the world economy, however sustainable development needs proper implementation of all checks and balances put in place. Care must be taken to follow a sustainable development model approach compliant with the real demand and supply scenario instead of hype created out of greed and speculation.

William King is the director of Islamabad Property & Islamabad Real Estate: http://www.zameen.com/Homes/Islamabad-3-1.html , Dubai Property Rentals & Dubai Rents: http://www.bayut.com/rent.html and Architects Business & Architects Services Directory: http://www.thearchitectsdirectory.com/ . He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.