Global Crisis PDF  | Print |

The recent global markets shake up over the financial health of Dubai and its effects on long term sustainability on Dubai's growth leaves me with the following observations.

 

One, the strategic geographic location of Dubai, it's sunny weather, cosmopolitan culture and it's unique position of a liberal economic and social hub in MENA remains the same irrespective of the liquidity position on UAE banks although it is reassured by central bank.

 

Two, A large share of Dubai's business units are privately or family owned, which is better positioned than the public joint stock companies to weather the economic turbulence

 

Three, Many of Dubai's long term investment's like metro, state of the art infrastructure, free zones, mega projects, the Dubai brand are meant for long term returns and many countries who involved in similar projects underwent turbulence in the short run (Don't forget those countries who still taxes people for an Olympics held decades ago).


Four, Behind every successful venture in the world, there are people with imagination and stable governance. Dubai has both and it cannot disappear overnight.


Five, Some of the world's largest sovereign investors are just an hour drive from Dubai and UAE federal system has passed the test of time.


Six, the present situation in Dubai is the product of reckless investors and global financial crisis. The first have learned a lesson and second is almost out of ventilator. Hence, a global recovery will accelerate Dubai's recovery with the creation of additional wealth globally.


Seven, Dubai is a far attractive place of setting up a business today than an year or two before. The rent is cheaper, infrastructure is better, talents are easily available at a reasonable price and liquidity and consumer confidence has significantly improved.

 

Eight, a slow down or economic meltdown means less opportunities and business activities compared to bullish time. It does not mean zero opportunities and disappearance of business activities.

 


In light of the above facts I like to suggest that Dubai's position as the capital of Middle East and North Africa's economic and tourist hub remains intact and the present concerns are exaggerated. And we are in the middle of a historic chance to be part of Dubai's recovery and the phenomenal opportunity it unfolds.


P.H NEJIB, Managing Partner, Buff & Lean International Consultants, Abu Dhabi

 

 
Designed by