Crisis buzz

THE SEVERE CREDIT crisis in the US has sent ripples across the world, affecting the global economy. Although the US government has come out with a US$ 700 billion bailout package to help banks, confidence among common people in the resurgence of the economy remains low.

Far away from the scene of this economic turmoil, Dubai has remained a boomtown, with a real estate market that continues to thrive. This is evident at Cityscape Dubai, the largest real estate exhibition of its kind in the region, which began on October 6. Is Dubai’s booming real estate market immune to the enveloping crisis of global economy? City Times spoke to some visitors and participants at Cityscape, to find out what they think.

Clarice Pound, Australian

I cannot say that I know what’s going to happen. But speaking from instinct, I feel the US credit crisis is going to have minimum effect here, although economies almost everywhere are tied with the US economy. I don’t think investors are going to shy away from putting money in real estate in Dubai. Of course, my opinion is based on the strength of the UAE banks and what’s going on here. The UAE actually is a different country from what’s going on in the rest of the world. Dubai real estate market is vibrant because of all the money, the oil, the outside investments that are coming in here. They are trying to make Dubai the tourist capital of the world, because oil is going to run out in some years and nobody is going to come here unless you have these fabulous buildings.

Abdullah Fahad, Saudi Arabian businessman

The US economy is witnessing problems but the economies of the Middle East nations are strong. Moreover, I feel everything is different here in the region: people are different, lifestyles are different, investors are different. So, I don’t think there is going to be any adverse impact of the US crisis. Dubai’s real estate market, which took the lead in development and growth, has spawned a trend. Qatar and Saudi Arabia, too, have scores of new projecting coming up. So, I feel real estate markets here will continue to flourish at least for some time.

Mr Norbert, German businessman

With the credit crunch, the US economy is shaken. And I feel what is happening in the US economy is changing the economies of the world. New economies are going to pick up now, like of China or India. I am sceptical by nature but the US crisis is not going to affect the market here because it is the world market which is bringing in the money here, not only the American market. The money comes from India, China, Europe and other places. What I see happening, however, is that consumption is going to go up and then it is going to affect the world economy. The US is the biggest consumer, so any economic crisis there is bound to send reverberations around the world.

Machaiah Machimada, Indian, Fall Protection Expert, oil industry

I do not think that the real estate market here is totally immune to the effects of the financial crisis plaguing the global economy. As it is we have seen that banks here are reining in lending. This has already cast its shadow over corporate finance and building plans. Moreover, oil prices have been dropping and stock markets across the region have been falling for some months. The credit crunch problem has not been so severe here. Still, there have been reports of the country’s central bank pumping in money to east credit problems. I feel if the global crisis worsens, it will have its rippling effects: maybe affecting the financing for projects. So, overall, I think it is going to make the investor cautious, if nothing else. Only time, however, will tell how it will turn out.

Ben Reid, Australian, architect

I don’t see too much of an impact here of the US crisis. There is so much stuff going on here; there is so much development and so much money coming in around here that I do not think there is going to be any adverse effect from whatever is happening elsewhere in the world. I think investors are going to continue to pour money into real estate market here. The market continues to be vibrant. It is possible that things will continue to be upbeat here for years to come.

citytime@emirates.net.ae