DUBAI ECONOMIC CRISIS

INTRODUCTION OF DUBAI 
Dubai is

the one of seven Emirate of UAE  Located at the cross-roads of Asia, Europe crossand Africa  Sunshine, shopping, seaside, sports and safety -five of the key ingredients that have earned Dubai a growing reputation as one of the world's most attractive and rapidly developing leisure destinations.

INTRODUCTION OF DUBAI 
Trading

and commercial hub of the Middle East  Dubai is well positioned to attract tourists

RESOURCES PERCENTAGE OF UAE

SECTORAL COMPOSITION OF GDP OF DUBAI

OTHER FACTS AND FIGURES 
Unemployment  GDP growth  CPI inflation  National debt

4% May (2009) 7.4% (2008) 1.9% April (08 ±09) $142 billion June 18,09

INTRODUCTION OF DUBAI CRISIS 
Dubai was

another fallout of the global real estate bubble  Global financial markets are tumbling after Dubai World, the government investment company burdened with $59 billion liabilities, requested for deferment of debt to its creditors for six months, on 25th Nov 2009

INTRODUCTION OF DUBAI CRISIS 
The

Dubai government¶s total debt is estimated at $80 billion  After 2003- Dubai economic model 2003More debt & less equity.  Dubai has accrued debts around 200% of GDP.

OVERVIEW OF CRISIS 
Government

restrictions were low.  Dubai¶s main development engine- Dubai engineworld and its real estate arm- NAKHEEL arm Issued NAKHEEL bonds- investors ready bondsto invest as it was state owned  Today many bonds are due and cash flows not enough to pay them back

OVERVIEW OF CRISIS 
There

is a maturity mismatch- the expected mismatchrevenue is in the future while liabilities, including to contractors and suppliers, are piling up today.

Sign up to vote on this title
UsefulNot useful