Economic Growth of Dubai

Economic Growth of DubaiIs Dubai Playing It Right?Nowadays there doesnt see to be an end to human needs. People aspire for prosperity prosperous life, a good job, a good house, to drive a well construct car, and even to turn in a huge Bank accountThese aims may be a little bit crashed because of the economic crisis that has recently take out the world. many countries after this crisis tried to recover and rebuilt their economy and return to be stronger and face this crisis. Others couldnt do that as this economy crisis hit it very hard as this landed estate resources atomic number 18 non good enough or rich enough to get over it. From the countries that were hit by this economic crisis is Dubai. Dubai is a very card-playing growing country economically, it is the meeting point between the East and the West, it links between western modern life and eastern hospitality. Dubai is one of the seven emirates of the linked Arab Emirates UAE. There is nothing you cant find in Dubai from beautiful beaches and clear aqua blue seas to indoor activities, an underwater hotel and skyscrapers, there is never a deficit of things to do in Dubai. It has the biggest airport in the world, the largest man-made port in the world, the largest Mall in the world, the only 7 Stars Hotel in the World, the largest Skyscraper in the world and in the end the largest Theme Park in the world which is about 3 times bigger in size than Disney World in Orlando as came in DubaiCondoProperty.com. The read/write head is is it a right way to become a leading economic country at this short time? People might think that it is not the best path for development because there are slightly barriers. First, resources being under stress. Second, large amounts of loans leading to debts, and Third, masses that might lose their jobs and companies that might unopen down if the economy falls down.One of the sympathys that support this point of view is that any developing country it should have e nough resources for investment especially if we are talking about the UAE, many of these countries contain Oil resources except Dubai This city state is purely a business city wholly depending upon tourism and otherwise business. Dubai World, attract world entrepreneurs that started spending more and more on building fine roads, and 7 Star Hotels. Prasadjain state in an article entitled pecuniary crisis in Dubai, reasons and effects. So Dubai is not an Oil Country and depend mainly on specie that it earns from these investments especially tourism sector. tho immediately after this economic crisis a rumor spread that after the Atlantis opening ( which cost about 1.5Bn Dollars ) the hotel was only charging 10 percent of the original price and has only about 26 percent occupancy as mentioned in Diversification Dubais crepuscle by Helena Axelson Fisk. Also it was published that Dubai began to pronounce a plan for building dickens more villages like Al Nakheel (Palm Island) which is a group of Islands on the shape of a Palm that cost about 110Bn Dollars before it was even completed As published in BBC News website.Huge investments surely need massive amount of money, this condition is not available in Dubai, it tend to Borrow money from Banks all over the world, leading to debts then failure to repay. UAE faces up to $184 Billion total debt according to estimates by Bank of America Merrill Lynch, also the Bank verbalize that Dubai only faces almost $50 billion of debt amortization in the next three years $12 billion in 2010, $19 billion in 2011 and $18 billion in 2012as mentioned by Sebastian Tong in article entitled UAE faces up to $184 billion total debt BofA-Merrill Lynch. Also there are many Banks that were hit because of Dubai inability to repay Banks were hit particularly hard on concerns over Dubais ability to pay back its debts as came on BBC News, some of these Banks are Barclays which was the biggest faller down by 8%, followed by Royal Bank of S cotland, which lost 7.8%. Dubai asked for a six-month delay on debt repayments it was due to repay $3.5Bn in December.Other reason that strengthens my position is that a fast economic growing country should have a strong market study and economic plan to preserve peoples jobs as when it falls down, people might lose their jobs and companies might shut down, thats what happened in Dubai when it was hit by economic crisis. Nowadays a lot of people were laid-off and lost their jobs because companies couldnt pay them. Lots of people have left my neighbor, an architect from the US, was fired and her whole company was shut down. A western journalist said as mentioned in BBC News. Other witness to these incidents A lot of our friends have lost jobs, particularly senior management in human resources and information technology, some have stayed here, but others have left, says Grace, in an article by Michael Buchanan. It reached that people leaving Dubai and parking their cars in the airpo rt. On a recent walk well-nigh the car park at Dubai Airport, there were more than two dozens cars that looked completely abandoned by their owners. Some people wrote little messages on the layers of smoothen that have gathered on the vehicles. One says Gone 4 Ever, and another says He will return Inshallah This was mentioned by Michael Buchanan as well. Concerning losing jobs as well Buchanan mentioned that The contention for jobs is fierce now, whereas there would be two people for one job before, I think there is ten now. The opportunities arent there as much and the salaries arent there. Its merely getting worse and worseOn the other hand, some people might disagree with this point of view and assure that Dubai will make it and locomote peacefully from this economic trap as Abu Dhabi Dubais Twin has just lent it $ 10Bn to repay her debts as mentioned by Margaret Coker in an article entitled Dubais Rescue Boosts Others. But it would be the same and the circle would not stop a s its going to be a Series of Debts.Finally, Dubai should take step by step in her economical growth and not jumps, plus its not the top needs of citizens to have this luxurious fantasy life, by this amount of money Dubai might have done many important projects to help the 3rd World Countries, these amounts of money can be charged to many productions that might aid the needs of people all over the world.Works CitedTitle UAE faces up to $184 billion total debt BofA-Merrill Lynch Site www.reuters.comDate Published 27 Nov. 2009Date Access 15 Dec. 2009URL http//www.reuters.com/article/idUSTRE5AQ28C20091127Name PrasdjainTitle Financial crisis in Dubai Reasons and EffectsSite www.hubpages.comDate Access 17 Dec. 2009URL http//hubpages.com/hub/FINANCIAL-CRISIS-IN-DUBAI-REASINS-AND-EFFECTSTitle Shares hit by Dubai debt problemsSite www.bbcnews.comDate Published 26 Nov. 2009Date Access 15 Dec. 2009URL http//news.bbc.co.uk/2/hi/8381258.stmName Helena Axelson FiskTitle Diversification Dubais Do wnfallSite www.global-economy.suite101.comDate Published 30 Nov. 2008Date Access 15 Dec. 2009URL http//global-economy.suite101.com/article.cfm/diversification_dubais_downfallTitle Views from Dubai The end of the dreamSite www.bbcnews.comDate Published 27 Nov. 2009Date Access 15 Dec. 2009URL http//news.bbc.co.uk/2/hi/8381363.stmName Michael BuchananTitle Time of transition in Dubai as construction work brush offSite www.bbcnews.comDate Published 6 Dec. 2009Date Access 17 Dec. 2009URL http//news.bbc.co.uk/2/hi/business/8397832.stm