Having got over the worst in the last few months, Dubai is once again in the news for more positive reasons. The construction industry is picking up once again, both on the residential and commercial fronts. Developers are once again picking up unfinished building contracts and trying to deliver them albeit a little behind planned schedules. Current estimates already place Dubai with a 20 percent over supply of apartments compared to the demand for them, and this is likely to see the value of rented and available for sale residential real estate fall by as much as 30 to 50 percent by the end of the year.
With oil prices having normalized, liquidity and confidence seems to be returning to the Middle East. In Dubai, work has resumed at a frenetic pace and the task of expanding its airport, landscaping golf courses and other such related developments continues unfettered. Abu Dhabi’s partial rescue of Dubai World has done much to restore the faith of UK based banks. However they are still trying to control their exposure and as a result the task of putting liquidity into the banking sector will be left to mostly locally based banks.
Meanwhile the rising price of oil has given some hope to formerly stagnant projects, as many previously discarded ventures have suddenly become viable. As cash and credit begin to fuel the economy once again, this has prompted a much needed sigh of relief in the region. However the mood by and large continues to be cautious. Although there is a sense that the worst is over, almost no one expects to get back to the heady days of the boom period.
In a sense December’s bleak financial period served as a much needed wake-up call not only for Dubai but the rest of the region as well, forcing business and Government functionaries to shape up. One effect has been that people are now more inclined to think from a longer term, wider perspective. For example, people have realized that leaving behind sunk costs in unfinished partially completed construction projects may not be viable especially if more than 30-40 percent of the budget had already been spent. It makes more sense to go for completion and get the money back from sellers, renters or investors. What is abundantly clear now is that the investment climate will get better as people and firms get a better sense of the worth of their investments and the outlook for the future. Banks are also making an effort to increase liquidity, encouraged by the news that US$ 4 billion of Dubai’s funds remained untouched in the coffers of the emirate of Abu Dhabi.
Sunday, February 28, 2010
Sunday, January 10, 2010
The Changing Landscape of Abu Dhabi
The emirate of Abu Dhabi is one of the richest in the world. It is also the capital of the UAE and houses the Parliament and other Government buildings, a stock exchange and financial district besides other administrative buildings. Abu Dhabi is a well planned city and its wide roads, elegant public spaces, parks and sidewalks are a testament to its builders. It seems almost unbelievable that just barely 40 years ago, Abu Dhabi was nothing but desert. Its inhabitants led mostly a nomadic lifestyle. Traditionally it was good hunting ground for deer.
In fact the name Abu Dhabi translates as ‘father of the gazelle’ in modern usage.
Since the topology of the land suggested that it would be a good fit for oil and gas exploration, permission was given for exploratory drilling and these efforts bore fruit when oil was first discovered in 1958. However the ruling Shaikh Shakhbut was unsure of how large the reserves were and how long they would last, so he endeavored to keep much of the wealth to himself rather than develop the emirate. The British helped his brother Shaikh Sultan Zayed bin Al Nahyan take over the reins of the administration on 6 August 1966.
It was only after the British left in 1971 that effort towards transforming the city from a nomadic lifestyle to a modern paradise of skyscrapers was seriously undertaken by Sultan Zayed bin Sultan Al Nahyan, who died in 2004. He has been succeeded by his eldest son Shaikh Khalifa, now ruler of the emirate.
In terms of its cosmopolitanism, Abu Dhabi ranks just behind Dubai as a magnet for expatriates. The transformation of Abu Dhabi has taken place due to the efforts of overseas workers mainly from Iran, India, Pakistan, Bangladesh, Sri Lanka, the Philippines, UK and a host of other nations. Like Dubai, Abu Dhabi too has been seeking to diversify its economic base beyond oil revenues and has succeeded beyond expectation, as up to 64 percent of its Gross Domestic Product is based on the retail, real estate, tourism and industry sectors. Being home to the UAE Government offices and the UAE National Bank headquarters makes Abu Dhabi an important financial and regional hub. This obviously translates into a lot of job opportunities for migrating workers in a variety of fields and industries.
For those interested in working and living in the UAE, classifieds sites Abu Dhabi is one of the first columns to be looked at in the local newspapers. In fact Abu Dhabi classifieds sites give a good idea of how good or bad the opportunities are in Abu Dhabi. Some of the most relevant fresh opportunities in every field are advertised in the classifieds Abu Dhabi sections of both English and Arabic newspapers. In the hiring season not only the newspapers but the classifieds websites Abu Dhabi also reflect good hiring opportunities. Other than that, Abu Dhabi has a more conservative outlook and lifestyle than its more flamboyant neighbor, Dubai. It is a picture of steadfastness and quiet elegance.
In fact the name Abu Dhabi translates as ‘father of the gazelle’ in modern usage.
Since the topology of the land suggested that it would be a good fit for oil and gas exploration, permission was given for exploratory drilling and these efforts bore fruit when oil was first discovered in 1958. However the ruling Shaikh Shakhbut was unsure of how large the reserves were and how long they would last, so he endeavored to keep much of the wealth to himself rather than develop the emirate. The British helped his brother Shaikh Sultan Zayed bin Al Nahyan take over the reins of the administration on 6 August 1966.
It was only after the British left in 1971 that effort towards transforming the city from a nomadic lifestyle to a modern paradise of skyscrapers was seriously undertaken by Sultan Zayed bin Sultan Al Nahyan, who died in 2004. He has been succeeded by his eldest son Shaikh Khalifa, now ruler of the emirate.
In terms of its cosmopolitanism, Abu Dhabi ranks just behind Dubai as a magnet for expatriates. The transformation of Abu Dhabi has taken place due to the efforts of overseas workers mainly from Iran, India, Pakistan, Bangladesh, Sri Lanka, the Philippines, UK and a host of other nations. Like Dubai, Abu Dhabi too has been seeking to diversify its economic base beyond oil revenues and has succeeded beyond expectation, as up to 64 percent of its Gross Domestic Product is based on the retail, real estate, tourism and industry sectors. Being home to the UAE Government offices and the UAE National Bank headquarters makes Abu Dhabi an important financial and regional hub. This obviously translates into a lot of job opportunities for migrating workers in a variety of fields and industries.
For those interested in working and living in the UAE, classifieds sites Abu Dhabi is one of the first columns to be looked at in the local newspapers. In fact Abu Dhabi classifieds sites give a good idea of how good or bad the opportunities are in Abu Dhabi. Some of the most relevant fresh opportunities in every field are advertised in the classifieds Abu Dhabi sections of both English and Arabic newspapers. In the hiring season not only the newspapers but the classifieds websites Abu Dhabi also reflect good hiring opportunities. Other than that, Abu Dhabi has a more conservative outlook and lifestyle than its more flamboyant neighbor, Dubai. It is a picture of steadfastness and quiet elegance.
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