03-09-2009, 05:47 PM
Dears,
Dubai (not the whole UAE) is not purely based upon oil exports. It's a truth. It was also based upon foreign investment and was a hub of the international business. When people start playing with money they try to create money without having any foundation, merely through speculative approaches. Majority of the individuals were relying on micro financing and personal loans. I mean everything they had. In contrast prices of properties were touching the skies. This was all due to speculation based upon interest based economy and a quest for luxurious life. So when the crises hit the Dubai and they lost their jobs they had nothing liquid to manage their lives. Their properties and assets were either subject to loans or proved to be non marketable commodity due mainly to two reasons i.e. unrealistic high prices, vanishing of liquidity from all the economy.
This is the first time that such a substantial number of people have left this country. They left their (around 3000) cars on airports and did not even bother to take out the keys. The people who came to Dubai with millions had nothing while reverting. They were unable to sell their properties and could also not pick them back to the home countries. The banks do not know how to realise their loans. There is no buyer even if they re-possess the mortgaged properties.
God knows where the crises created by speculations, interest based economy and coupled with the situation created by the so-called war against terror will take the world to.
Dubai is now looking forward to Abu Dhabi for the bailout. Let's see what happens next.
Regards,
KAMRAN.
Dubai (not the whole UAE) is not purely based upon oil exports. It's a truth. It was also based upon foreign investment and was a hub of the international business. When people start playing with money they try to create money without having any foundation, merely through speculative approaches. Majority of the individuals were relying on micro financing and personal loans. I mean everything they had. In contrast prices of properties were touching the skies. This was all due to speculation based upon interest based economy and a quest for luxurious life. So when the crises hit the Dubai and they lost their jobs they had nothing liquid to manage their lives. Their properties and assets were either subject to loans or proved to be non marketable commodity due mainly to two reasons i.e. unrealistic high prices, vanishing of liquidity from all the economy.
This is the first time that such a substantial number of people have left this country. They left their (around 3000) cars on airports and did not even bother to take out the keys. The people who came to Dubai with millions had nothing while reverting. They were unable to sell their properties and could also not pick them back to the home countries. The banks do not know how to realise their loans. There is no buyer even if they re-possess the mortgaged properties.
God knows where the crises created by speculations, interest based economy and coupled with the situation created by the so-called war against terror will take the world to.
Dubai is now looking forward to Abu Dhabi for the bailout. Let's see what happens next.
Regards,
KAMRAN.
