Dubai Investment Property

The Government of United Arab Emirate announced the reorganization of the Middle East, Dubai’s sovereign investment company Dubai World, and to seek 6-month delay in repayment of debt. Dubai is the UAE’s second-largest emirate, the Government has vigorously expanded last year for banks, real estate and transport sectors. The rapid expansion has caused it’s debt reached 80 billion U.S. dollars. But people long ago discovered that the huge infrastructure projects in Dubai and the Palm Island Dubai tourism resort areas are rushed project during the period of prosperity without proper planning, the so-call “building on sand”.

According to Dow Jones Newswires reported that the Dubai government’s debt toll of 80 billion U.S. dollars, including Dubai, the world’s 59 billion U.S. dollars of debt, of which over half of the debt held by the European banks, about 400 billion U.S. dollars. Credit Suisse analysts said that if these 400 million in loans in the loss of half of the European banks of the bad debt provision will likely increase 5%. Some analysts refer to Standard Chartered and HSBC last year to the UAE loans, one of the eight major foreign banks. Standard Chartered said that the right to review specific customers.

The global credit crisis, tumbled the property market, according to Deutsche Bank statistics, the Dubai property prices have plummeted by half since the peak in 2008, UBS report predicts will be dropped by another 30%, the level of returns in 2008 will take several years. Recent developments have shown signs of improvement open to foreign investors to buy residential property prices, the first three quarter rose 7%, but was still down 47% a year. Oil prices rebound this year, Dubai oil money, driven by the oil economy is slowly recovering, Standard Chartered Bank in Dubai predicted Dubai next year’s economic growth will contracted from 4% from 1% this year.