Mohammed Alabbar, who is also chairman of Emaar Properties, the country’s biggest property developer, said  that despite the global slowdown, Dubai, and the rest of the UAE is holding up.

“We used to grow by 15 per cent, this year (Dubai) we will probably grow by five per cent, “ Alabbar told participants at the World Economic Forum.

Alabbar was also bullish about the prospects of the second $10 billion bond issuance of the Dubai government, and said he expected issue  to be snapped up largely by investors.

“The issuance is in the final stages, and I think that a reasonable chunk of the bond will be in the market.”

The $10 billion bond offer would be the second tranche of a planned $20 billion bond programme by the Dubai government, aimed at helping distressed government-owned and government-affiliated companies that were adversely affected by the crisis. The first tranche of $10 billion was issued in February and was taken  up entirely by the UAE’s Central Bank.

His Highness Shaikh  Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, said on November 9 that he was confident that the bond programme will be well-received.

Alabbar said the strong leadership of the Dubai government, as well as its quick response to the global downturn has stabilised the economy.

The past  12 months have been painful months, with Dubai being “in the eye of the storm in 2008, but in 2009 we are a bit wiser.”

Dubai was the worst hit among the seven emirates, as the global crisis unfolded last year. Its once robust property sector plunged, as property prices were halved from their peak in 2008. Thousands of expatriates lost their jobs, as companies downsized.

Despite its setbacks, Dubai has been able to meet its debt obligations, and the population is growing back, said Alabbar.

“Statistics show that the population has grown over the past 12 months by 400,000,” said Alabbar, adding that migration to Dubai was highest in June and July. He did not cite figures.

Alabbar added that the highly-anticipated opening of Burj Dubai, the world’s tallest skyscraper, on January 4 will boost Dubai’s property sector.

The real estate business  is still in the doldrums, as analysts forecast prices will still go down further next year, with new supply coming on stream amid sputtering demand.

“We are seeing a good rate of return of about 10 per cent, a modest one. But if you look at the value that the Burj Dubai brings to the city of Dubai, it’s an incredible value. It brings a lot of optimism… about the company’s ability to move forward.”

·         rocel@khaleejtimes.com