Credit Crisis Hits Dubai

Credit Crisis Hits Dubai

For a long while now, Dubai has been a tourist hot-spot for spectacular architecture and beautiful coastlines. Building companies have been going strong now for many years building the worlds biggest and most beautiful structures. But it has finally happened. The Dubai real-estate market has collapsed and the fantastical building has come to a stand still.

Emaar, the company who built the Burj Dubai, has had a 79% drop in its stock, and their not the only ones. The general stock index of the Dubai financial markets has dropped from 6,315 to 2,012 this year alone. “Unless they've been funded by a sovereign wealth fund, they're being pulled” Has this really happened? Is there no money left in Dubai? It seems that the only way you’re getting your building anything is if you’re funding it out of your own very deep pockets. It seems that every project in Dubai is “on hold indefinitely.”

So now Dubai has conundrum, nobody will come to this fantasy land in the Middle East. They have built themselves up into one of the most expensive places in the world and now nobody can afford to go.

In my opinion Dubai will not simply die out. It is a beautiful place architecturally and once this credit crisis is fixed Dubai will go back to being a major tourist hotspot.

http://www.guardian.co.uk/artanddesign/2008/nov/21/dubai-atlantis-palm