# Dubai's 2016 Budget



## The Rascal (Aug 6, 2014)

Read between the lines....

7 days (yes that bastion of unbiased and credible news).



> Revenue from government services, which represents 74 per cent of total revenue


So for government services, read fines and cost of setting up companies, fees etc.

Now I think it's ****ing scary that three quarters of all revenue in Dubai LLC is from this.


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## Stevesolar (Dec 21, 2012)

The Rascal said:


> Read between the lines....
> 
> 7 days (yes that bastion of unbiased and credible news).
> 
> ...


Other side of the coin - at least Dubai's income is not oil price dependent - unlike Abu Dhabi.


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## jgw99 (May 26, 2014)

Stevesolar said:


> Other side of the coin - at least Dubai's income is not oil price dependent - unlike Abu Dhabi.


 In addition, a lot of other countries "deemed" developed derive bulk revenue from a host of taxes (income, property, social services, etc). Replace "taxes" here as "fees" and voila...


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## The Rascal (Aug 6, 2014)

Stevesolar said:


> Other side of the coin - at least Dubai's income is not oil price dependent - unlike Abu Dhabi.


It is though, not directly but indirectly, the biggest visitors to Dubai are from other GCC Countries all dependant on the black slippy stuff. Tourism is Dubai's biggest money earner, if the tourists don't arrive due to their oil based economies going through the floor (Saudi), then the house of cards that is Dubai will collapse.


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## Balla Boy (Jan 3, 2015)

Stevesolar said:


> Other side of the coin - at least Dubai's income is not oil price dependent - unlike Abu Dhabi.



I think that's a bit optimistic. Most of the financial services, technology, professional services etc firms here are doing a fair bit of their trading with oil economies.


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## Stevesolar (Dec 21, 2012)

Balla Boy said:


> I think that's a bit optimistic. Most of the financial services, technology, professional services etc firms here are doing a fair bit of their trading with oil economies.


Agreed - but I was talking direct income.


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## jgw99 (May 26, 2014)

The Rascal said:


> It is though, not directly but indirectly, the biggest visitors to Dubai are from other GCC Countries all dependant on the black slippy stuff. Tourism is Dubai's biggest money earner, if the tourists don't arrive due to their oil based economies going through the floor (Saudi), then the house of cards that is Dubai will collapse.


This and the black swan potential of not being able to sustain a peg to the USD should the price of crude continue to languish at current levels or lower. I didn't do a fact check but if you're right and if most of tourist expenditures are from "oil" wealth+potential de peg scnario, this could get very nasty.


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## twowheelsgood (Feb 21, 2013)

Its already getting nasty. Lots of stalled projects, unfunded promises with no sign of an RFP and nFI when they will be released.

Expo is funded, Creek dig and road move is funded and just about everything else is 'on hold' or being repeatedly redeveloped as thats cheap to do. Lots of hotels are being finished off but only because of Expo.Its that bad that there are rumours that the UAE is actually considering contractor funded developments (as the developers are basically out of cash) but to do this they have to change the laws quite a bit.


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## shotcaller (Dec 20, 2013)

twowheelsgood said:


> Its already getting nasty. Lots of stalled projects, unfunded promises with no sign of an RFP and nFI when they will be released.
> 
> Expo is funded, Creek dig and road move is funded and just about everything else is 'on hold' or being repeatedly redeveloped as thats cheap to do. Lots of hotels are being finished off but only because of Expo.Its that bad that there are rumours that the UAE is actually considering contractor funded developments (as the developers are basically out of cash) but to do this they have to change the laws quite a bit.


Could you elaborate on which developers are out of cash as I have been tracking the major ones in Dubai and their developments seem to be mostly on track albeit with minor delays. Moreover they have been in a deleverage mode after the last crisis. However you may know something that I dont so your insight would be helpful


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## Stevesolar (Dec 21, 2012)

Hi,
I don't think it would be a good idea for members to discuss which developers may or may not be in financial difficulties on an Internet forum - bearing in mind the strict defamation and Internet privacy laws in Dubai.
If you name companies on here - you are at grave risk of those companies opening a police case for defamation - which in recent high profile cases has resulted in people being arrested and deported.
Cheers
Steve


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## twowheelsgood (Feb 21, 2013)

Stevesolar said:


> Hi, I don't think it would be a good idea for members to discuss which developers may or may not be in financial difficulties on an Internet forum - bearing in mind the strict defamation and Internet privacy laws in Dubai. If you name companies on here - you are at grave risk of those companies opening a police case for defamation - which in recent high profile cases has resulted in people being arrested and deported. Cheers Steve


Maybe they shouldn't print it in the newspapers then ?


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