Arab Today, arab today big plans make comeback in postcrisis dubai
Last Updated : GMT 06:37:29
Arab Today, arab today
Arab Today, arab today

Big plans make comeback in post-crisis Dubai

Arab Today, arab today

Arab Today, arab today Big plans make comeback in post-crisis Dubai

Dubai - AFP

Dubai is back in the business of unveiling mega projects, three years after a severe financial crisis crippled its booming property sector, but doubts still linger over finance and feasibility. Just as the economy in the glitzy city-state begins to look promising, despite a large debt burden dating back to the years when growth appeared endless, Dubai has once again set its sights on building superlatives. \"We do not anticipate the future. We build it,\" Dubai\'s ruler Sheikh Mohammed bin Rashid Al-Maktoum, architect of its meteoric rise into a regional tourism and services hub, boasted last week as he unveiled plans to build a \"city\" carrying his name. Among the attractions of the new mega plan is a mall touted to be the largest in the world, not far from what is already the world\'s largest shopping and entertainment destination, the Dubai Mall. Mohammed bin Rashid City will sprawl over a large swathe of the emirate\'s desert and have gardens 30 percent larger than London\'s Hyde Park, in addition to 100 hotels, and a Universal Studios theme park. No price tag was attached to the project which is to be developed by the ruler\'s Dubai Holding conglomerate and Emaar, which built Burj Khalifa, the world\'s tallest tower. This week, Dubai also announced a 10 billion dirham ($2.7 billion) leisure center and theme parks. Dubai appears keen to capitalize on its growing tourism sector which it said is expanding 13 percent a year, with hotel occupancy rate hitting 82 percent last year. Sheikh Mohammed said the emirate must stay ahead of expanding demand and match its ambitions. \"The current facilities available in Dubai need to be scaled up in line with the future ambitions for the city,\" he said, highlighting a constant rise in tourism and the business of hosting forums and exhibitions. \"A large part of these projects are linked to expanding Dubai\'s capacity in core sectors with comparative advantage, such as tourism, which is positive,\" said Monica Malik, chief economist at EFG-Hermes investment bank in Dubai. But the source of funding for such grandiose projects remains vague. \"We do have our own resources and way to finance... We are sure that these projects will be achieved,\" the Arabian Business online magazine quoted Hani Al-Hamli, Dubai Economic Council secretary general, as saying. Beyond general assurances, Dubai continues to deal with the burden of maturing debt, after it racked $ 113 billion in borrowings during years of extensive investments, with $ 9.8 billion reportedly coming due next year and $ 3 billion in 2014. \"Banks remain wary about lending to real estate developments at a time when they still have to make major provisions against non-performing real estate loans from the last development boom,\" said real estate consultancy firm Jones Lang LaSalle in a statement Thursday. However, \"the fact that these projects have long-term time lines is positive as they can be developed alongside demand, both domestically and internationally, so as not to build overcapacity,\" Malik told AFP. \"The funding of these plans is important and should be matched with revenue growth potential,\" she added. Dubai\'s economy contracted 2.4 percent in 2009 when it rattled global markets over its debt crisis before receiving a $10-billion bailout from Abu Dhabi, its partner in the Emirates, and reaching restructuring deals with lenders. The economy has since made a comeback, growing 2.8 percent in 2010, 3.4 percent in 2011, and 4.1 percent on an annual basis in the first half of this year, as tourism, trade and transport keep expanding. But real estate — a main engine of rapid growth before the crisis — lags behind other sectors, with growth of just 1.5 percent in the first six months of 2012. The sector crashed in 2009 as the global crisis dried up finance and investors walked away from planned projects, many of which were eventually put on hold or cancelled. \"Encouragingly, there are indications that some of the lessons of the last real estate crisis have been learned,\" said Jones Lang LaSalle. \"The most important of these is the need to adopt a long-term and coordinated approach, rather than developing too much real estate too quickly.\"

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today big plans make comeback in postcrisis dubai Arab Today, arab today big plans make comeback in postcrisis dubai

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today big plans make comeback in postcrisis dubai Arab Today, arab today big plans make comeback in postcrisis dubai

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday