The Dubai crisis it seems is a crisis of many proportions. In the opinion of some experts, even the US$10 billion assistance by Abu Dhabi to help bailout Dubai World in its US$4.1 billion repayment of Sukuk bonds has not made a sufficient impact on the world stage. Dubai World can take a breather for now, but the real problem is how to get the market thinking positively again.
There are a variety of opinions on this issue and the Dubai based local and foreign think tanks have their hands full speculating on what would be good or bad moves toward the revival of the emirate’s beleaguered economy.
To be sure, it is never easy to get the economy back from a recession. When the world’s biggest economy fell into a recession two years ago, it slowly became evident that this was more than a local phenomenon. It has affected every US trade partner. The sad part was that the Republican Administration took a long time in announcing this fact officially. It was already up to its neck in the War on Terror, and was more interested in paralyzing the American way of life through repeated terror warnings ala Homeland Security. It had entered Iraq seeking to find weapons of mass destruction that were non-existent, and after no success to date in tracing the whereabouts of the world’s most wanted man, Osama bin Laden, its war expenditures were rapidly taking it into more and more debt. What’s more, Dubya in his usual pompous fashion promptly vetoed Congress’s repeated decisions to cut back on war spending with his ‘devil may care’ attitude.
All these events would in effect culminate in sinking America into a deep recession. The Republican Government once again started events in motion in the mortgage sector by consolidating many firms under the control of Fannie Mae and Freddie Mac. Laws and regulations in the banking sector were changed to enable this to take place. The net effect was that the administration in both these companies was overwhelmed by the change and responsibility that this entailed.
Another factor that contributed to the worldwide recession was the loss of cultivated crops in many countries due to the effects of flooding, tsunamis, mudslides and other natural and manmade calamities. These food shortages not only affected the distribution of food supplies but contributed to inflationary trends in prices of food in many nations.
So now the world including Dubai classifieds is faced with the challenge of how to revive the economy and stimulate growth. Economists argue that it’s all a matter of perception and therefore if we change the reality, the change in thinking will follow. For one thing, the Government of Dubai needs to simplify the process for issuing three year residence visas that earlier enabled foreign national to invest, live and work in Dubai for that term. It may bring back interest in Freehold Property Dubai, restore buyers’ confidence in this moment of crisis and add some life to foreign property investment in a region that presently shows an investment meltdown.
Both leasehold and freehold properties Dubai are open for consideration for those coming in to the emirate for business or pleasure. It is also possible to rent apartments in Dubai at affordable rates now that the property bubble has burst. One needs to just look at apartments rent Dubai in the classified section of the newspapers.