When will it be over for Dubai

Just when you thought that the world economy is recovering and so should that of Dubai, few signs prove this point. The recent excitement about opening the Metro was one. However, that was overshadowed by the negative press about the frequent delays and issues that it is facing. While some might be happy that a lot of people are using the Metro, it became a victim of its own success and a project which is 75% over budget.

City Scape is being held again in Dubai in October. However, its GM declared that the exhibitors are down by 30% and that Emaar and Nakheel decided to participate although they declared otherwise before. This in itself brings some doubts and lowers confidence in the sector. It would be interesting to see what kind of success this City Scape will have.

While I could not find the latest import/export figures for Dubai ports, the one for Abu Dhabi, the Capital, showed a 58% downward trend in automotive import/export figures. This is another indication that automotive which has been a big sector in the economy has gone back to the level it were three years ago.

By the end of this year, Dubai has to pay around US$ 4 billion. Everyone is waiting to see if they are going to keep their commitments. It seems a lot is riding on this. Also, everyone is watching to see how they are going to manage the US $ 84 billion debts that they have.

There has been around 2 million visitors/tourists to Dubai. However, a report mentioned that the length of stay has shortened which means less revenue for hotels and other service sectors that cater for this segment.

All predictions point to the middle of 2010 as a time where a tangible recovery will be felt. So let’s wait and see.

~ by rafickd1 on September 28, 2009.