Dubai expects its economy to expand by just under 2.5 percent in 2009 as real estate, construction and exports come under pressure. This growth figure comes in sharp contrast with the usual 8-9% yearly growth. (Full)
The hardest hit is, of course, the real estate market. A local rumour says that Emirates Airlines is still doing well, simply because it is flying so many expat workers back home.
Rumour or not, construction firms in the UAE confirm they are sending some 20,000 Indian workers back home next month. (Full).
Fact also is that almost 60 percent of real estate projects in Dubai, worth a total of $75 billion, are being either delayed or cancelled according to a new report by HSBC. (Full)
It is not just Dubai. Also the Emirate of Abu Dhabi takes serious hits: the leading real estate developers note drops in profit of up to 94% in the last quarter of 2008. Full)
And we have not reached bottom yet. While some property prices have fallen 50%, the prediction is the bottom will only be reached by the 2nd half of 2009. (Full)
Guess Emirates Airlines will continue to be busy repatriating expats for quite a while.
Who would have thought selling cheap home loans in some US back quarters would have this ripple effect across the globe, hey?
Update: See also:
- Dubai Economy in Free Fall
- List of cancelled projects in Dubai
- Driven down by debt, Dubai expats give new meaning to long-stay car park
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