Discussion in 'Economics' started by lsudaytrade, Oct 27, 2008.
will it continue to remain prosperous despite this financial/oil meltdown?
only if we start using sand for money
There will certainly be a downturn in Dubai, but I think they have set themselves up very well as THE finance center for the Middle East, Africa and the Indian Subcontinent. The Free Trade Zones they have established have attracted a lot of money and brain power to the area, and while the rest of the Middle East is very dependent upon Oil, it makes up a very small portion of Dubai's GDP.
All of this, at least in my opinion, adds up to an area that will be able to withstand the crunch. It's probably going to have to scale back (alot) on some of the more ambitious projects and whatnot, but I think that Dubai is here to stay.
PS, another city that flies under the radar, but is spectacular and worth keeping an eye on Doha.
Revenue from Petroleum and Natural Gas account for slightly under 6% of Dubai's $37billion economy. Construction and real estate, however, account for nearly 23% of the economy..and certainly that is an area that will get hit. The city has grown very quickly, its population in 1995 was 675,000, in 2005 it was 1.2million and today it is estimated to be over 2.1million. Emirati's and other Arab's account for only about 30% of the cities overall population.
Fine so long as we have a financial system left after all this is over.
Dubai had a special on 60 minutes, CNBC, oil was at 145...gulf money flowing into dubai..even Commercials promoting companis from Dubai that i saw
fwd 1 year..... Russia is blowing up ( TONS OF RUSSIANS IN DUBAI...aka..FLIGHT MONEY)
Oil at 65....less Gulf money
best of all...Hard to now get a mortgage in Dubai....gonna make those flips
I live in miami and see first hand what happens when supply outstrips demand.... I have friends who live in dubai who said the PALMS is a GHOST TOWN as of 6 months ago...and now the WORLD project is going up
with 1/3 of the worlds cranes and a penchant for "FLIPPING" apartments that made miami flippers look like amateurs...DUBAI is going to CRASH
ALSO>..dont forget...DUBAI's currency is pegged to the Dollar...GUESS WHAT....makes that real estate/ shopping/ vacation even that much more expensive for those "europeans. Russians/ Indians" whose own purchasing power has just evaporate
BIG MALLs, OVERSUPPLY, and more expensive goods/vacations
ALSO...for anyone that thinks Dubai's malls are cheap....your dreaming.... just cause Jabil ALi is a free zone...it doesnt mean stuff is much cheaper there
Long term...Dubai is a long..
Short term......its a MONSTEROUS SHORT
I agree with other Poster.... DOHA is Dubai 15 years ago...with actual real money behind it.... as is Abu Dhabi
Dubai is the housing bubble for the arab oil billionaires.
Now that petrodollars stop flowing, the bubble will bust.
All bubbles go bust, soon or late, there's just no way around it.
Thanks for the post, it confirms some information I came across recently.
aliens are going to come to our planet after we have extinguished ourselves and see Dubai and think to them selves: What the fuck?!?
They will study it and hypothesize as to why there is a huge city in the desert like its Easter Island.
When you don't see any russian and east european hookers,
You'll know the time to get out of Dubai.
Dubai prosperity quotient is directly correlated to the # of russian hookers in the hotel lobby.
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