03-16-2009, 10:24 PM
Dear CFANerd & Other members,
With reference to your last post
1) Dubai economy is not a spend, spend, spend economy, Dubai economy is based on export and re-export. Imports are usually for re-exports. 70% of the population save their earrings for remit or for future.
2)Dubai doesn't have oil and also UAE economy is not only based on oil exports. Yes oil contributes big portion towards the revenue but other sources of revenue are Gas / Minerals / security related equipments / items.
3) It is a misconception that UAE Government invest huge amount of money in Construction Projects. Foreign investors invest in the projects UAE Govt only provides them Land , and in return earn land rentals /sponsorship fees etc etc.
Ocean / Island big projects are all financed by foreign companies and buyers are also foreigners .
Government only invest in projects like Metro / Train / Roads etc. and interesting thing is that major portion of this also finance from marketing rights / other rights . The prices of land near theses projects increases and Govt also earn by rental that part of land on increased price.
4) The UAE national population is very thin , and they have sufficient to manage them for unlimited number of years. Retention of foreign population is the issue of foreigners not the UAE government but they are trying to take necessary steps so that no one will go out of the country due to the crisis.
5) There are other factors too for the growth or sustainability of any economy.
I dont want to go into details but the factors that help UAE to sustain its growth are
1) US$peg
2) Oil exports unit US$
3) Iran issue
4) Afghanistan issue
5) Saudi Arabia issue
It is correct that major parts of the world are under great economical crisis, but you have to examine each country independently, as I wrote before in my past post Construction is going on in other parts of the world like Sudan , Tanzania Brazil etc. UAE is the big exporters of construction equipments including minerals used in the industry.
The current security issues in neighboring countries also helps UAE to gain benefits from west.
One note
Surf the net & you will find the list of manufacturing units in UAE including one of the world largest RAK Ceramics.
On labour issues please re-visit the laws.
Best Regards
With reference to your last post
1) Dubai economy is not a spend, spend, spend economy, Dubai economy is based on export and re-export. Imports are usually for re-exports. 70% of the population save their earrings for remit or for future.
2)Dubai doesn't have oil and also UAE economy is not only based on oil exports. Yes oil contributes big portion towards the revenue but other sources of revenue are Gas / Minerals / security related equipments / items.
3) It is a misconception that UAE Government invest huge amount of money in Construction Projects. Foreign investors invest in the projects UAE Govt only provides them Land , and in return earn land rentals /sponsorship fees etc etc.
Ocean / Island big projects are all financed by foreign companies and buyers are also foreigners .
Government only invest in projects like Metro / Train / Roads etc. and interesting thing is that major portion of this also finance from marketing rights / other rights . The prices of land near theses projects increases and Govt also earn by rental that part of land on increased price.
4) The UAE national population is very thin , and they have sufficient to manage them for unlimited number of years. Retention of foreign population is the issue of foreigners not the UAE government but they are trying to take necessary steps so that no one will go out of the country due to the crisis.
5) There are other factors too for the growth or sustainability of any economy.
I dont want to go into details but the factors that help UAE to sustain its growth are
1) US$peg
2) Oil exports unit US$
3) Iran issue
4) Afghanistan issue
5) Saudi Arabia issue
It is correct that major parts of the world are under great economical crisis, but you have to examine each country independently, as I wrote before in my past post Construction is going on in other parts of the world like Sudan , Tanzania Brazil etc. UAE is the big exporters of construction equipments including minerals used in the industry.
The current security issues in neighboring countries also helps UAE to gain benefits from west.
One note
Surf the net & you will find the list of manufacturing units in UAE including one of the world largest RAK Ceramics.
On labour issues please re-visit the laws.
Best Regards
