# Economic downturn?



## Onourway (Oct 14, 2008)

Hi Guys,

If anyone could shed some light on the state of the economy in Dubai/Abu Dhabi? 

Has the global price of oil had an immediate impact on the building industry and its supply chain?

I was to be posted to Dubai in early Jan 2009, however my CEO is concerned the current global financial crisis may have a dire flow on to the UAE economy.

Just wondering if he's throwing me a line or whether his concerns are justified?

Any thoughts from those in the know would be appreciated

Cheers,

Nath


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## sgilli3 (Mar 23, 2008)

There has certainly been a downturn here, most noticeably in the construction and real estate sectors.
Both areas have had some major layoffs.


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## Andy Capp (Oct 5, 2008)

Out of interest, the following is from Reuters

DUBAI, Nov 13 (Reuters) - The United Arab Emirates' largest bank has halted retail lending to foreigners employed by top Dubai property firms on fears a slowdown could jeopardise their jobs and income, an internal document obtained by Reuters said.
Emirates NBD instructed staff on Nov. 6 by email not to grant retail credit to foreigners working for firms including as Emaar Properties, Tamweel and state-owned Nakheel, the memo showed.
The memo was published by a magazine earlier on Thursday.
Suvo Sarkar, general manager for retail banking at Emirates NBD declined to comment, and Sanjay Uppal, the group's chief financial officer was not immediately available.

Emirates NBD will not provide retail credit to people working for 12 firms. The list also included Damac Holding, Union Properties, Amlak, Damac Invest Co, Damac Investment & Properties, Daman Investments, Sama Dubai, Dubai Properties and KM Properties, Nakheel,Emaar and Tamweel.

and

To all who are interested, just had some interesting news, it is apparently that this is far from over nor has it really began. banks are expected to stop all lending all together. You want to borrow, you need to deposit the same amount as security. No security cheques, cash or assets only.

and finally

a friend went to Mashreq bank a few days ago to withdraw 250,000 from his account, the first branch was closed till further notice, the other declined to accommodate him, reason given... "They did not have any cash"!!!
- while the bubble seemed to be burst, it is far from the worst that is yet to come, 
Nakheel staff reported people offering units for resale not just at 0% premium, but at large loss as well just to get rid of the payments that are due.
-Cash is king by Christmas time, were you will be able to purchase at 50% discount at some of the bet addresses. At the moment, penthouse apartments in Palm that where listed for around 12 mill a few months ago are being offered for 6 mill, and no buyers.
Villas in certain areas of dubai which were advertised for 30 mill a few weeks ago are being offered at half price, and no buyers. 
Expect to see buy one get one free very soon from developers. 

Recession? What recession.....


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## Elphaba (Jan 24, 2008)

See also

Burj Dubai property prices fall - The National Newspaper

_Residential prices for Emaar Properties’s signature Downtown Burj Dubai development have fallen by at least 22 per cent, with reductions of up to 50 per cent within the Burj Dubai tower itself, according to property brokers. 

Some high-end developments in Abu Dhabi are also recording significant price declines in the secondary market, where properties change hands after being sold by the developer._

Property prices have been over inflated for some time, so a correction is overdue. 

Dubai/UAE has never been immune, but many sectors will see limited downturns. Dubai will suffer more than AD, as AD is sitting on sovereign wealth funds in the billions, if not trillions, and will prop up anything deemed very important.

-


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## Onourway (Oct 14, 2008)

Thank you all for such prompt responses.

In the words of Yoda "Much to consider you have yes"

How does this affect your jobs guys?

I can thank my lucky stars I still have a job with the company here in Australia. I just read a thread where a poor bloke and his wife in the UK threw their jobs in and then were notified the contract was retracted.

All the best.

Nath


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## greatexpectations (Aug 5, 2008)

banking sector layoffs are also imminent - I heard...

a period of stagnation in the jobs market (and even more so a decline) will have an enormous impact on housing prices given the increasing supply...

you don't have to be Keynes to draw the graph.


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## alli (Mar 6, 2008)

shiiiiiiiiiiiiiiiiiiit.


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## DesertStranded (Oct 9, 2008)

Damn, and I left my voodoo doll for wealth and prosperity at home.


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