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The latest news hitting the Internet and the newsstands today is that Dubai World, the principal ports and shipping authority of the city of Dubai has succeeded in restructuring US$26 billion of its almost US$60 billion debt outstanding with various creditors. This is indeed good news and will do a lot to dispel the rumors of Dubai itself being in a financial crisis. No doubt, with the recent declines witnessed in the stock markets both in Dubai and Abu Dhabi, things did not look so good as the market apparently over-reacted to the news that Dubai World had been saddled with US$60 billion of debt repayments. The move by Dubai World to ask creditors for more time and then restructuring its debt in the light of financial expertise from Deloitte has certainly worked. It must be said that Dubai World had never admitted any failure to meet debt commitments- however, it was just asking for more time to pay. In the interim it would have to review its whole debt structure and revamp the payment plan to make it feasible and match assets and liabilities when due. Undoubtedly the plan worked and now that Dubai World has managed to pay off nearly half of its outstanding debts, we can all breathe a sigh of relief that there will hopefully be no further repercussions along this front. Now that the crisis has been averted, what of its housing and banking sectors? These have been the drivers of Dubai’s phenomenal growth. It is logical to assume that things will definitely pick up, provided no further unpleasant surprises are in store for us. All things considered, the property market is at an all time low, so there is ample opportunity for buyers and sellers to interact with serious offers that can go to fruition. It’s certainly a great time to Buy Property in Dubai, or if one has the money, to consider picking up any of the Dubai Villas for Sale. Meticulously constructed to provide a host of conveniences, these are prized properties with good sale value, especially depending on their location and floor space. For Dubai Short Stays, one may even look at renting something at the magnificent Palm Jumeirah out in the pristine waters of the emirate as a summer residence. In Dubai, without a doubt there is surely something that appeals to everyone’s tastes and pockets. If Dubai is to successfully emerge from this crisis, it needs to learn its lessons well. One thing is that is must seek to diversify its economy. By over concentrating on construction, it has over invested in the real estate sector and the results are that supply is greatly outstripping demand. A lot of office and residential space, 10 million square feet by some estimates, is lying unutilized because of the construction boom and those places that have been completed or are nearing completion are not anticipated to fill up more than 40 percent of their total capacity. The city planners also need to give opportunities to other businesses to operate so that trading and commercial activity is enhanced, which would be good for the overall economy and future of Dubai.
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